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Historical, technical information: (202) 606-5606 Current data: (202) 606-7828 Media contact: (202) 606-5902 USDL 96-334 Transmission of this material is embargoed until 10:00 A.M. EDT Wednesday, August 14, 1996. PRODUCTIVITY AND COSTS Second Quarter 1996 The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary productivity data--as measured by output per hour of all persons--for the second quarter of 1996. The preliminary seasonally adjusted annual rates of productivity change in the second quarter were: 0.5 percent in the business sector, and -0.1 percent in the nonfarm business sector. In the business sector, productivity growth in the second quarter was slower than in the first quarter, when it rose 2.0 percent (as revised). In the nonfarm business sector, productivity fell in the second quarter after posting an increase of 1.8 percent one quarter earlier. In manufacturing, productivity changes in the second quarter were: 1.5 percent in manufacturing, 3.1 percent in durable goods manufacturing, and -0.1 percent in nondurable goods manufacturing. The second-quarter increase in manufacturing productivity was the smallest since the second quarter of 1993. Output and hours in manufacturing, which includes about 18 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the more aggregate business and nonfarm business sectors. Second-quarter results are summarized in table A and appear in detail in tables 1 through 5. The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources (page 5). ----------------------------------------------------------------------------Table A. Productivity and costs: Preliminary second-quarter 1996 measures (Seasonally adjusted annual rates) ----------------------------------------------------------------------------Real Hourly hourly Unit Produccompen- compen- labor Sector tivity Output Hours sation sation costs ----------------------------------------------------------------------------Percent change from preceding quarter Business 0.5 4.4 3.9 4.1 0.2 3.6 Nonfarm business -0.1 4.2 4.3 3.7 -0.1 3.8 Manufacturing 1.5 5.5 3.9 5.8 1.9 4.2 Durable 3.1 10.0 6.6 6.8 2.8 3.5 Nondurable -0.1 0.1 0.2 3.8 0.0 3.9 ----------------------------------------------------------------------------Percent change from same quarter a year ago Business 0.9 3.1 2.2 3.8 1.0 2.9 Nonfarm business 0.7 3.1 2.4 3.8 0.9 3.1 Manufacturing 4.0 3.0 -1.0 3.8 0.9 -0.2 Durable 5.4 6.0 0.6 3.3 0.4 -2.0 Nondurable 2.5 -0.8 -3.2 4.4 1.5 1.8 ----------------------------------------------------------------------------- Business From the first to the second quarter of 1996, business sector productivity increased at a 0.5 percent annual rate, as output rose 4.4 percent and hours of all persons engaged in the sector rose 3.9 percent. In the first quarter, productivity had increased 2.0 percent as output increased 3.0 percent and hours rose 1.0 percent (table 1). Hourly compensation increased 4.1 percent in the second quarter and 3.0 percent in the first quarter of 1996. This measure includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Unit labor costs, which reflect changes in hourly compensation and productivity, increased at a 3.6 percent annual rate during the second quarter, compared with a 1.0 percent rise during the first quarter. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), increased at a 0.2 percent annual rate in the second quarter, after falling 0.2 percent one quarter earlier. The implicit price deflator for the business sector, which reflects changes in unit labor costs and unit nonlabor payments, increased 2.5 percent in the second quarter, compared with a 1.5 percent rise in the first quarter. Nonfarm business Productivity fell 0.1 percent in the nonfarm business sector during the second quarter of 1996, compared with a 1.8 percent increase in the first quarter (table 2). Hours of all persons in the nonfarm business sector increased 4.3 percent in the second quarter, slightly more than the 4.2 percent increase in output. In the previous quarter, hours increased 1.0 percent and output rose 2.7 percent. In both the first and second quarters of 1996, employment in nonfarm business rose 2.5 percent. Average weekly hours, on the other hand, fell 1.5 percent in the first quarter but rose 1.7 percent in the second quarter. Hourly compensation increased at a 3.7 percent annual rate in the second quarter, slightly more than the 3.3 percent increase one quarter earlier. When the rise in the CPI-U is taken into account, real hourly compensation dropped 0.1 percent in the second quarter of 1996 after remaining unchanged in the first quarter. Unit labor costs grew 3.8 percent in the second quarter, compared with the 1.5 percent increase posted in the previous quarter. The implicit price deflator for nonfarm business output rose 2.2 percent in the second quarter and 1.4 percent in the first quarter of 1996. Manufacturing Productivity increased 1.5 percent in manufacturing, as output rose 5.5 percent and hours of all persons rose 3.9 percent (seasonally adjusted annual rates). In the first quarter, productivity increased 5.6 percent, as output rose 2.4 percent and hours declined 3.0 percent (table 3). The hours increase in the second quarter followed four consecutive quarters of decline and was the largest increase since the fourth quarter of 1987, when it increased 5.0 percent. In durable goods, productivity increased 3.1 in the second quarter of 1996, less than the 7.8 percent increase posted in the first quarter. Both output and hours in durable goods manufacturing showed strong gains in the second quarter of 10.0 and 6.6 percent, respectively. Productivity declined 0.1 percent in nondurable goods manufacturing in the second quarter, as output increased 0.1 percent and hours rose 0.2 percent (tables 4 and 5). Hourly compensation of all manufacturing workers increased 5.8 percent during the second quarter. In the first quarter, hourly compensation in manufacturing had risen 0.4 percent. The first-quarter movement in hourly compensation was affected by a pension contribution made in 1995 by a large durable goods manufacturer. In the second quarter, hourly compensation rose 6.8 percent in durables and 3.8 percent in nondurables. Manufacturing real hourly compensation rose 1.9 percent when the increase in consumer prices is taken into account, compared with a 2.8 percent drop in the previous period. Unit labor costs rose at a 4.2 percent annual rate in the second quarter after falling 4.9 percent one quarter earlier. The second-quarter increase in unit labor costs in manufacturing was the largest since a 6.0 percent rise in the first quarter of 1991. ----------------------------------------------------------------------------Table B. Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rate ----------------------------------------------------------------------------Real Hourly hourly Unit Produccompen- compen- labor Sector tivity Output Hours sation sation costs ----------------------------------------------------------------------------First quarter 1996 Business: Previous 2.3 3.3 1.0 3.1 -0.1 0.8 Current 2.0 3.0 1.0 3.0 -0.2 1.0 Nonfarm business: Previous Current 2.1 1.8 3.1 2.7 1.0 1.0 3.3 3.3 0.1 0.0 1.2 1.5 Manufacturing: Previous 5.5 2.3 -3.0 -0.7 -3.9 -5.9 Current 5.6 2.4 -3.0 0.4 -2.8 -4.9 ----------------------------------------------------------------------------- Revised Measures Current and previous measures for the first quarter of 1996 for the business, nonfarm business, and manufacturing sectors are compared in table B. In the business and nonfarm business sectors, increases in productivity and output are somewhat smaller than reported on June 18, based on information then available. In manufacturing, hourly compensation shows a slight increase rather than the decline originally reported. Compensation measures for all sectors and output measures for the business and nonfarm business sectors incorporate the "limited" annual revision of the national income and product accounts produced by the Bureau of Economic Analysis, U.S. Department of Commerce (BEA 96-24). Appendix tables 1-6 contain information for 1993, the earliest year affected. Revised measures: Nonfinancial Corporations Productivity and cost measures for the first quarter for nonfinancial corporations, which were revised to incorporate the most recent information, were generally the same as the preliminary results announced on June 18. Unit profits grew at an annual rate of 14.3 percent compared with the preliminary estimate of 13.5 percent (table C). ----------------------------------------------------------------------------Table C. Nonfinancial corporations: Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rates ----------------------------------------------------------------------------Real Hourly hourly Unit Implicit Produccompen- compen- labor Unit price Period tivity Output Hours sation sation costs profits deflator ----------------------------------------------------------------------------First quarter 1996: Previous 1.3 2.3 1.0 2.6 -0.7 1.3 13.5 1.8 Current 1.1 2.2 1.0 2.6 -0.6 1.5 14.3 1.7 ----------------------------------------------------------------------------- Next release date The next release of Productivity and Costs is scheduled for 10:00 a.m. EDT, Tuesday, September 10, 1996. Revised second-quarter measures for business, nonfarm business, and manufacturing will be released at that time, along with measures for nonfinancial corporations. TECHNICAL NOTES Labor Hours: The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on total employment and average weekly paid hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly paid hours are adjusted to hours at work using the BLS Hours at Work survey, conducted for this purpose. Data from the BLS Current Population Survey (CPS) are used for farm labor; in the nonfarm sector, the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors, and unpaid family workers. Output: Business sector output is an annual-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: General government, nonprofit institutions, paid employees of private households, and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor inputs. Business output accounted for about 76 percent of the value of GDP in 1992. Nonfarm business, which also excludes farming, accounted for about 75 percent of GDP in 1992. Annual manufacturing indexes are constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the Census with deflators from the BEA. These deflators are based on data from the BLS producer price program and other sources. The industry shipments are aggregated using annual weights, and intrasector transactions are removed. Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve System adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. Durables include the following 2-digit SIC industries: Primary metal industries; fabricated metal products; nonelectrical machinery; industrial and commercial machinery and computer equipment; electronic and other electrical equipment; transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass and concrete products; and miscellaneous manufactures. Nondurables include: Food and kindred products, tobacco products, textile mill products, apparel products, paper and allied products, printing and publishing, chemicals and chemical products, petroleum refining and related industries, rubber and plastic products, and leather and leather products. Nonfinancial corporate output is an annual-weighted index constructed by excluding from GDP the following outputs: General government; nonprofit institutions; employees of private households; the rental value of owneroccupied dwellings; unincorporated business; and those corporations which are depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. Nonfinancial corporations accounted for about 52 percent of the value of GDP in 1992. Productivity: These productivity measures describe the relationship between real output and the labor time involved in its production. They show the changes from period to period in the amount of goods and services produced per hour. Although these measures relate output to hours at work of all persons engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of production. Rather, they reflect the joint effects of many influences, including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of production; managerial skill; and the characteristics and effort of the work force. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 1994 1995 I II III IV r100.4 r100.5 r101.1 101.2 r104.9 r106.7 r107.7 108.7 104.5 106.1 106.6 107.4 104.0 r104.2 r104.7 r105.6 99.4 r99.0 r98.6 r98.9 r103.6 r103.6 103.6 r104.4 r104.5 r105.7 r107.6 r107.8 103.9 104.4 105.1 105.6 ANNUAL r100.7 r107.0 106.2 104.5 r99.0 103.8 r106.5 r104.7 I II III IV 100.7 r101.2 r101.6 r101.5 108.8 r109.0 r110.3 r110.4 108.1 107.7 108.5 108.8 r106.6 r107.8 r108.8 r110.0 r99.1 r99.4 r99.8 r100.3 r105.8 r106.5 r107.1 r108.4 r107.4 r107.7 r108.2 r106.6 r106.4 106.9 r107.5 r107.8 ANNUAL r101.2 109.6 108.3 r108.2 r99.7 r107.0 r107.5 107.1 1996 I 102.0 111.2 109.1 r110.8 r100.2 r108.7 r107.3 r108.2 II 102.1 112.4 110.1 111.9 100.3 109.6 107.4 108.8 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV r-1.9 r0.6 2.2 r0.6 r1.7 r6.9 4.1 r3.8 3.6 6.3 1.9 3.2 r2.6 r0.8 r2.3 r3.4 r0.6 r-1.8 r-1.4 r1.2 4.6 r0.2 r0.2 r2.8 -1.3 r4.6 r7.3 r0.7 2.4 1.8 r2.7 2.0 ANNUAL 0.5 4.2 3.7 1.9 -0.6 1.4 3.5 2.2 I II III IV r-1.9 r1.9 r1.7 r-0.6 r0.3 r0.7 r4.8 r0.5 2.3 -1.1 3.0 1.1 r3.6 r4.6 r3.9 r4.4 r0.7 r1.2 r1.8 r1.9 r5.6 r2.7 r2.2 r5.0 r-1.5 r1.2 r1.8 r-5.6 r3.0 r2.2 r2.0 r1.0 ANNUAL 0.5 2.5 2.0 r3.6 r0.7 r3.1 r1.0 r2.3 1996 I r2.0 r3.0 1.0 r3.0 r-0.2 r1.0 r2.4 r1.5 II 0.5 4.4 3.9 4.1 0.2 3.6 0.5 2.5 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV r0.2 r0.8 1.1 r0.3 r3.4 r4.5 r4.8 r4.1 3.2 3.7 3.6 3.7 r2.2 r1.8 r1.9 r2.3 -0.2 r-0.6 r-1.0 r-0.4 r2.0 r1.0 r0.8 r1.9 r2.4 r3.7 r5.1 r2.8 2.2 2.0 2.3 2.2 ANNUAL 0.5 4.2 3.7 1.9 -0.6 1.4 3.5 2.2 I II III IV r0.3 0.7 r0.6 r0.3 3.8 r2.2 r2.4 r1.6 3.4 1.5 1.8 1.3 r2.5 r3.5 r3.9 r4.1 r-0.3 r0.4 r1.2 r1.4 r2.2 r2.8 r3.3 r3.9 r2.7 r1.9 r0.5 r-1.1 r2.4 r2.5 2.3 2.0 ANNUAL 0.5 2.5 2.0 r3.6 r0.7 r3.1 r1.0 r2.3 I 1.2 2.2 1.0 r4.0 r1.2 r2.7 r-0.1 1.7 II 0.9 3.1 2.2 3.8 1.0 2.9 -0.3 1.8 --------------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 r=revised Source: Bureau of Labor Statistics Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator(4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 1994 1995 I II III IV 100.2 r100.5 r101.0 101.2 r104.9 r106.7 r107.8 108.8 104.6 106.1 106.7 107.5 103.7 r104.0 r104.6 r105.5 r99.1 r98.8 r98.4 r98.8 r103.4 r103.5 103.5 r104.3 r104.9 r106.3 r108.4 r108.4 103.9 104.5 105.3 105.7 ANNUAL r100.7 r107.0 106.3 104.3 r98.8 103.7 107.0 104.9 I II III IV 100.8 r101.3 r101.8 r101.5 109.0 r109.2 r110.6 r110.7 108.1 107.8 108.6 109.0 r106.5 r107.7 r108.8 r109.9 r99.0 r99.3 r99.8 r100.2 r105.6 r106.3 r106.8 r108.2 r108.1 r108.4 r108.8 r107.0 106.5 r107.1 107.5 r107.8 ANNUAL r101.3 r109.9 108.4 r108.2 r99.6 r106.7 r108.1 107.2 1996 I 102.0 111.4 109.3 r110.7 r100.2 r108.6 r107.3 r108.1 II 102.0 112.6 110.4 111.8 100.1 109.6 107.1 108.7 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV r-2.0 r1.0 2.0 r0.9 r0.8 r7.0 4.2 r4.0 2.9 5.9 2.1 3.1 r2.8 r1.4 r2.1 r3.9 r0.7 r-1.2 r-1.6 r1.6 r4.8 r0.3 r0.1 r2.9 -1.6 r5.6 r8.1 r0.0 2.5 2.2 2.9 r1.9 ANNUAL 0.5 4.0 3.5 r2.1 -0.5 1.5 r3.5 2.3 I II III IV r-1.6 r2.0 r2.0 r-1.1 r0.6 r0.9 r5.0 r0.3 2.2 -1.0 2.9 1.5 r3.7 r4.6 r4.0 r4.1 r0.8 r1.1 r1.9 r1.6 r5.4 r2.6 r1.9 r5.2 r-1.0 r1.0 r1.3 r-6.4 r3.0 r2.0 r1.7 r0.9 ANNUAL 0.7 2.7 2.0 r3.7 r0.8 r3.0 r1.0 2.2 1996 I r1.8 r2.7 1.0 3.3 r0.0 r1.5 r1.1 1.4 II -0.1 4.2 4.3 3.7 -0.1 3.8 -0.8 2.2 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV r0.1 0.8 0.9 0.5 r3.3 4.3 4.3 4.0 3.2 3.5 3.4 3.5 r2.1 r1.9 r2.0 r2.5 r-0.4 r-0.5 r-0.8 r-0.1 r2.0 r1.1 r1.1 r2.0 r2.1 r3.9 r5.1 r3.0 2.1 2.1 2.5 r2.4 ANNUAL 0.5 4.0 3.5 r2.1 -0.5 1.5 r3.5 2.3 I II III IV r0.6 0.8 r0.8 0.3 r3.9 2.4 2.6 1.7 3.3 1.6 1.8 1.4 r2.7 r3.5 r4.0 r4.1 r-0.1 r0.5 r1.4 r1.4 r2.2 r2.7 r3.2 r3.8 r3.1 r2.0 r0.3 r-1.3 r2.5 r2.5 2.1 r1.9 ANNUAL 0.7 2.7 2.0 r3.7 r0.8 r3.0 r1.0 2.2 I r1.2 2.2 1.1 r4.0 r1.2 r2.8 r-0.8 1.5 II 0.7 3.1 2.4 3.8 0.9 3.1 -1.2 1.5 --------------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 1994 1995 I II III IV 104.8 106.2 106.6 107.7 107.3 109.5 110.9 113.0 102.4 103.2 104.0 105.0 r104.4 r104.7 r105.5 r106.4 99.9 99.5 r99.4 r99.6 r99.7 r98.6 r99.0 r98.8 ANNUAL 106.1 110.2 103.8 105.1 99.5 99.0 I II III IV 108.3 109.0 110.4 111.5 114.1 113.5 114.2 114.6 105.3 104.1 103.4 102.8 r107.2 r108.3 r109.7 r110.8 r99.7 r99.9 r100.6 r101.0 r99.0 r99.4 r99.3 r99.4 ANNUAL 109.8 114.1 103.9 r109.0 r100.3 r99.3 1996 I r113.0 115.3 102.1 r110.9 r100.3 r98.2 II 113.4 116.9 103.0 112.5 100.8 99.2 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV 6.7 5.5 1.7 4.1 8.8 8.5 5.1 7.9 2.0 2.9 3.4 3.6 r3.3 r1.1 r3.1 r3.1 r1.3 r-1.4 r-0.6 0.9 r-3.1 r-4.1 r1.5 r-0.9 ANNUAL 4.0 6.5 2.4 2.7 0.1 r-1.2 I II III IV 2.4 2.7 5.3 3.7 3.9 -2.1 2.6 1.4 1.4 -4.7 -2.5 -2.2 r3.2 r4.3 r5.1 r4.1 r0.4 r0.8 r3.0 r1.7 r0.8 r1.5 r-0.2 r0.4 ANNUAL 3.4 3.5 0.1 r3.7 r0.8 r0.2 1996 I r5.6 r2.4 -3.0 r0.4 r-2.8 r-4.9 II 1.5 5.5 3.9 5.8 1.9 4.2 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV 3.1 4.5 4.5 4.5 4.7 6.5 7.1 7.6 1.5 1.9 2.4 3.0 r3.1 r2.8 r2.9 r2.7 r0.6 0.4 r0.0 r0.0 r0.0 r-1.7 r-1.6 r-1.7 ANNUAL 4.0 6.5 2.4 2.7 0.1 r-1.2 I II III IV 3.4 2.7 3.6 3.5 6.3 3.6 3.0 1.4 2.8 0.9 -0.6 -2.0 r2.7 r3.5 r3.9 r4.2 r-0.2 r0.4 r1.3 r1.5 r-0.7 r0.7 r0.3 r0.7 ANNUAL 3.4 3.5 0.1 r3.7 r0.8 r0.2 I 4.3 1.0 -3.1 r3.4 r0.7 r-0.8 II 4.0 3.0 -1.0 3.8 0.9 -0.2 -------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 1994 1995 I II III IV 107.0 108.2 109.0 110.3 110.4 112.6 114.8 117.5 103.2 104.1 105.3 106.6 r104.3 r104.5 r105.3 r106.0 r99.7 99.3 r99.1 r99.3 r97.5 96.6 r96.6 r96.1 ANNUAL 108.4 113.8 105.0 r104.8 r99.2 r96.7 I II III IV 111.5 111.8 113.6 114.8 119.5 119.0 120.4 121.5 107.2 106.4 106.0 105.9 r106.8 r107.7 r109.1 r110.1 r99.2 r99.3 r100.1 r100.4 r95.7 r96.3 r96.1 r95.9 ANNUAL 112.9 120.1 106.4 r108.4 r99.8 r96.0 1996 I r116.9 r123.1 105.3 r109.5 r99.0 r93.6 II 117.8 126.1 107.0 111.3 99.7 94.4 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 1996 I II III IV 7.4 4.8 3.0 4.7 11.0 8.6 7.8 9.9 3.3 3.6 4.7 5.0 r3.1 r1.0 r2.9 r2.8 r1.0 r-1.5 r-0.8 r0.6 r-4.1 r-3.7 r-0.1 r-1.8 ANNUAL 4.9 8.5 3.5 r2.5 r0.0 r-2.2 I II III IV 4.4 1.2 6.4 4.3 7.0 -1.9 5.1 3.6 2.4 -3.1 -1.2 -0.7 r2.7 r3.6 r5.3 r3.6 r-0.1 r0.2 r3.2 r1.2 r-1.6 r2.4 r-1.0 r-0.7 ANNUAL 4.1 5.5 1.3 r3.4 r0.5 r-0.7 I II r7.8 3.1 r5.5 10.0 -2.1 6.6 r-2.2 6.8 r-5.3 2.8 r-9.3 3.5 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV 4.4 5.3 5.8 5.0 6.8 8.4 9.5 9.3 2.3 2.9 3.5 4.1 r3.1 2.8 r2.9 r2.4 r0.6 0.4 r0.0 r-0.2 r-1.2 -2.4 r-2.8 r-2.4 ANNUAL 4.9 8.5 3.5 r2.5 r0.0 r-2.2 I II III IV 4.2 3.3 4.2 4.1 8.3 5.6 4.9 3.4 3.9 2.2 0.7 -0.7 r2.4 r3.0 r3.6 r3.8 r-0.5 r0.0 r1.0 r1.1 r-1.8 r-0.3 r-0.5 r-0.2 ANNUAL 4.1 5.5 1.3 r3.4 r0.5 r-0.7 I r4.9 r3.0 -1.8 r2.5 r-0.2 r-2.2 II 5.4 6.0 0.6 3.3 0.4 -2.0 -------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 1994 1995 I II III IV 102.8 104.3 104.4 105.3 104.3 106.3 106.9 108.3 101.4 101.9 102.4 102.8 r104.5 r104.8 r105.7 r106.5 r99.9 r99.6 r99.5 r99.7 101.7 r100.4 r101.2 r101.1 ANNUAL 104.2 106.5 102.2 r105.3 r99.7 r101.1 I II III IV 105.4 106.7 107.8 108.6 108.4 107.8 107.7 107.3 102.8 101.0 99.9 98.8 r107.5 r108.8 r110.0 r111.3 r100.0 r100.3 r100.9 r101.5 r102.0 r102.0 r102.1 r102.5 ANNUAL 107.1 107.8 100.6 109.4 r100.8 102.1 1996 I r109.3 r106.9 97.7 r112.5 r101.8 r102.9 II 109.3 106.9 97.8 113.6 101.8 103.9 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV 6.2 6.0 0.3 3.5 6.4 8.1 2.0 5.4 0.1 1.9 1.7 1.8 r3.5 r1.1 3.3 r3.4 r1.5 r-1.4 -0.5 r1.1 r-2.6 r-4.7 3.0 r-0.2 ANNUAL 3.1 4.1 1.0 r2.6 r0.1 r-0.5 I II III IV 0.5 4.8 4.1 3.0 0.6 -2.5 -0.3 -1.4 0.1 -7.0 -4.3 -4.3 r3.8 r4.9 r4.4 r4.7 r0.9 r1.5 r2.3 r2.3 r3.3 r0.2 r0.3 r1.6 ANNUAL 2.9 1.3 -1.6 r3.9 r1.1 r1.0 1996 I r2.9 r-1.5 -4.3 r4.6 r1.3 r1.6 II -0.1 0.1 0.2 3.8 0.0 3.9 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV 1.9 3.9 3.2 4.0 2.4 4.4 4.3 5.4 0.5 0.5 1.0 1.4 3.0 r2.6 r2.6 r2.8 0.5 r0.2 -0.2 r0.2 1.1 -1.2 r-0.6 r-1.1 ANNUAL 3.1 4.1 1.0 r2.6 r0.1 r-0.5 I II III IV 2.5 2.2 3.2 3.1 4.0 1.3 0.7 -0.9 1.4 -0.9 -2.4 -3.9 r2.9 r3.8 r4.1 r4.5 r0.0 r0.7 r1.4 r1.7 r0.3 r1.6 r0.9 r1.3 ANNUAL 2.9 1.3 -1.6 r3.9 r1.1 r1.0 I r3.7 r-1.4 -5.0 r4.7 r1.8 r0.9 II 2.5 -0.8 -3.2 4.4 1.5 1.8 -------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per allcompenhourly Unit nonunit proprice and employee Employee sation compenlabor labor cost fits deflator quarter hour Output hours (1) sation(2) costs cost(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------Indexes 1992=100 1994 1995 I II III IV r102.7 r102.5 102.4 r102.9 r107.4 108.9 r109.7 r111.5 104.6 106.2 107.0 108.3 r103.7 r103.7 r104.1 r104.8 r99.2 98.6 r98.0 r98.1 r101.0 101.2 101.6 101.9 r102.1 98.7 99.3 r98.3 101.3 100.5 r101.0 100.9 r120.5 134.5 136.5 r141.5 102.8 103.1 103.7 104.0 ANNUAL 102.6 r109.3 106.6 r104.1 98.5 101.4 99.6 100.9 133.4 103.4 I II III IV r102.2 r102.9 r104.2 r104.8 r111.4 r112.1 r114.0 r115.2 109.0 108.9 109.4 109.9 r105.6 r106.8 r107.8 r108.9 r98.2 r98.4 r98.9 r99.3 r103.4 r103.8 r103.5 r103.9 100.0 r100.9 r99.7 r100.0 r102.5 103.0 r102.5 r102.8 r130.9 r130.1 r142.1 r140.4 r104.7 105.1 r105.5 r105.7 ANNUAL r103.6 r113.2 109.3 r107.3 r98.8 r103.6 r100.1 r102.7 r136.0 105.2 1996 I r105.1 r115.8 110.2 r109.6 r99.1 r104.3 r99.3 r102.9 r145.1 r106.1 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV r0.8 r-0.5 r-0.3 r1.7 r5.0 r5.7 r2.8 r6.7 4.2 6.2 3.2 5.0 r3.5 r0.0 r1.4 r2.9 r1.4 r-2.5 r-2.3 r0.6 r2.6 r0.5 r1.7 r1.2 r12.0 r-12.8 r2.4 r-3.7 r5.1 r-3.3 r1.9 r-0.1 r-22.4 r55.2 r5.9 r15.6 2.2 1.2 r2.3 r1.4 ANNUAL r1.3 r5.6 4.2 1.8 r-0.7 0.5 -0.3 0.3 16.2 1.7 I II III IV r-2.7 r2.8 r5.2 r2.5 r-0.2 r2.4 r7.2 r4.3 2.5 -0.3 1.9 1.8 r3.2 r4.3 r4.1 r4.0 r0.3 r0.9 r2.0 r1.6 r6.0 r1.5 r-1.1 r1.5 r7.0 r3.7 r-4.7 r1.0 r6.3 r2.1 r-2.1 r1.4 r-26.8 r-2.4 r42.2 r-4.8 r2.4 r1.6 r1.6 r0.7 ANNUAL r0.9 r3.5 2.5 r3.1 r0.3 r2.2 r0.6 r1.8 r1.9 r1.8 1996 I r1.1 r2.2 1.0 2.6 r-0.6 r1.5 r-2.6 r0.4 r14.3 r1.7 ---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 I II III IV r2.5 1.6 1.0 r0.4 r6.1 r5.8 5.2 r5.1 3.5 4.2 4.2 4.6 r2.2 r1.8 1.6 r1.9 r-0.3 r-0.6 r-1.2 r-0.7 -0.3 r0.2 r0.7 1.5 r1.5 -1.3 r-0.6 r-0.9 0.2 -0.2 0.3 r0.9 r17.1 20.6 18.1 r10.2 1.5 1.6 1.9 r1.8 ANNUAL r1.3 r5.6 4.2 1.8 r-0.7 0.5 -0.3 0.3 16.2 1.7 I II III IV r-0.5 r0.3 r1.7 r1.9 r3.7 r2.9 r4.0 r3.4 4.2 2.6 2.2 1.4 1.9 r2.9 r3.6 r3.9 r-1.0 r-0.1 r0.9 r1.2 r2.4 r2.6 r1.9 r1.9 r-2.1 r2.3 r0.5 r1.7 r1.1 2.5 r1.5 r1.9 r8.6 r-3.3 r4.1 r-0.8 r1.8 1.9 r1.8 r1.6 ANNUAL r0.9 r3.5 2.5 r3.1 r0.3 r2.2 r0.6 r1.8 r1.9 r1.8 1996 I r2.9 r4.0 1.1 r3.7 r0.9 r0.8 r-0.7 0.4 10.9 1.4 ---------------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 r=revised Source: Bureau of Labor Statistics SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor Statistics and the Bureau of Economic Analysis. RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are first published 30 days after the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the self-employed. (2) Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers. (3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (4) Current dollar output divided by the output index. (5) Quarterly changes: Percent change compounded at annual rate from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) Unit nonlabor cost includes capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (7) Total unit cost is the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments. Appendix table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 1993 I II III IV 100.2 99.8 100.0 100.9 101.4 102.1 102.8 104.5 101.3 102.3 102.9 103.6 101.7 102.3 102.8 103.3 99.6 99.6 99.6 99.3 101.5 102.6 102.9 102.4 102.1 102.0 102.4 104.9 101.7 102.3 102.7 103.3 ANNUAL 100.2 102.7 102.5 102.5 99.5 102.3 102.8 102.5 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 I II III IV -3.5 -1.6 0.7 3.7 -1.2 2.5 3.0 6.5 2.4 4.2 2.3 2.7 1.9 2.6 1.9 1.8 -1.0 -0.3 0.1 -1.3 5.6 4.3 1.2 -1.8 -0.2 -0.6 1.7 10.2 3.5 2.5 1.3 2.4 ANNUAL 0.2 2.7 2.5 2.5 -0.5 2.3 2.8 2.5 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 I II III IV 0.8 -0.1 0.2 -0.2 2.6 2.5 3.0 2.7 1.8 2.5 2.8 2.9 3.1 2.9 2.1 2.1 -0.1 -0.2 -0.7 -0.6 2.2 3.0 1.9 2.3 2.9 2.0 3.8 2.7 2.5 2.6 2.6 2.4 ANNUAL 0.2 2.7 2.5 2.5 -0.5 2.3 2.8 2.5 --------------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 Source: Bureau of Labor Statistics Appendix table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator(4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 1993 I II III IV 100.1 99.7 100.1 100.8 101.6 102.2 103.3 104.7 101.4 102.6 103.2 103.9 101.5 102.0 102.5 103.0 99.5 99.3 99.3 98.9 101.4 102.4 102.4 102.2 102.7 102.3 103.1 105.3 101.8 102.4 102.7 103.3 ANNUAL 100.2 102.9 102.8 102.3 99.3 102.1 103.4 102.5 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 I II III IV -3.7 -1.8 1.6 2.7 -0.9 2.7 4.1 5.5 2.9 4.6 2.5 2.7 1.3 2.1 1.7 1.9 -1.6 -0.8 -0.1 -1.2 5.2 4.0 0.1 -0.8 1.4 -1.4 3.1 8.7 3.8 2.1 1.2 2.5 ANNUAL 0.2 2.9 2.8 2.3 -0.7 2.1 3.4 2.5 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 I II III IV 0.8 -0.2 0.4 -0.3 2.8 2.7 3.5 2.8 1.9 2.9 3.1 3.2 3.0 2.5 1.8 1.8 -0.2 -0.6 -1.0 -0.9 2.1 2.7 1.4 2.1 3.5 2.4 4.8 2.9 2.6 2.6 2.6 2.4 ANNUAL 0.2 2.9 2.8 2.3 -0.7 2.1 3.4 2.5 --------------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 Source: Bureau of Labor Statistics Appendix table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Output per Hours CompensacompensaUnit Year and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs ----------------------------------------------------------------------------------------------Indexes 1992=100 1993 I II III IV 101.6 101.6 102.0 103.1 102.5 102.8 103.6 105.1 100.9 101.2 101.6 101.9 101.3 101.9 102.6 103.6 99.3 99.1 99.4 99.5 99.7 100.3 100.6 100.5 ANNUAL 102.1 103.5 101.4 102.4 99.4 100.3 ----------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 I II III IV 2.3 -0.3 1.7 4.4 4.6 1.1 3.0 5.9 2.3 1.4 1.3 1.4 1.2 2.4 2.9 3.9 -1.7 -0.5 1.0 0.7 -1.1 2.6 1.2 -0.5 ANNUAL 2.1 3.5 1.4 2.4 -0.6 0.3 ----------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 I II 3.0 1.9 4.3 3.0 1.3 1.1 2.7 2.2 -0.5 -0.9 -0.2 0.3 III IV 1.5 2.0 3.1 3.6 1.5 1.6 2.0 2.6 -0.8 -0.1 0.5 0.6 ANNUAL 2.1 3.5 1.4 2.4 -0.6 0.3 ----------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 Source: Bureau of Labor Statistics Appendix table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Output per Hours CompensacompensaUnit Year and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs ----------------------------------------------------------------------------------------------Indexes 1992=100 1993 I II III IV 102.4 102.8 103.0 105.1 103.3 104.0 104.8 107.5 100.9 101.1 101.8 102.3 101.1 101.7 102.4 103.5 99.1 99.0 99.1 99.5 98.7 98.9 99.4 98.5 ANNUAL 103.4 104.9 101.5 102.2 99.2 98.9 ----------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 I II III IV 3.7 1.3 0.9 8.2 6.3 2.4 3.4 10.7 2.5 1.0 2.5 2.3 1.1 2.2 2.6 4.5 -1.8 -0.7 0.7 1.3 -2.6 0.9 1.7 -3.4 ANNUAL 3.4 4.9 1.5 2.2 -0.8 -1.1 ----------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 I II III IV 4.6 3.1 2.4 3.5 5.7 4.1 4.3 5.6 1.0 0.9 1.8 2.1 2.6 2.0 1.7 2.6 -0.6 -1.0 -1.0 -0.1 -2.0 -1.0 -0.6 -0.9 ANNUAL 3.4 4.9 1.5 2.2 -0.8 -1.1 ----------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 Source: Bureau of Labor Statistics Appendix table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Output per Hours CompensacompensaUnit Year and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs ----------------------------------------------------------------------------------------------Indexes 1992=100 1993 I II III IV 100.9 100.4 101.2 101.3 101.8 101.8 102.5 102.7 100.9 101.4 101.3 101.4 101.5 102.2 103.0 103.6 99.5 99.4 99.7 99.6 100.6 101.7 101.8 102.3 ANNUAL 101.0 102.2 101.2 102.6 99.6 101.6 ----------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 I II III IV 0.9 -1.9 3.0 0.4 2.9 -0.1 2.8 0.7 2.0 1.9 -0.3 0.3 1.3 2.6 3.2 2.6 -1.6 -0.3 1.3 -0.5 0.4 4.7 0.1 2.2 ANNUAL 1.0 2.2 1.2 2.6 -0.4 1.6 ----------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 I II III IV 1.4 1.0 0.9 0.6 3.0 2.2 2.1 1.6 1.6 1.2 1.2 1.0 3.0 2.5 2.4 2.4 -0.2 -0.6 -0.4 -0.3 1.5 1.5 1.5 1.8 ANNUAL 1.0 2.2 1.2 2.6 -0.4 1.6 ----------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 Source: Bureau of Labor Statistics Appendix table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per allcompenhourly Unit nonunit proprice and employee Employee sation compenlabor labor cost fits deflator quarter hour Output hours (1) sation(2) costs cost(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------Indexes 1992=100 1993 I II III IV 100.2 100.9 101.5 102.5 101.2 102.9 104.2 106.1 101.1 101.9 102.7 103.5 101.5 101.9 102.4 102.8 99.4 99.1 99.2 98.8 101.3 100.9 100.9 100.4 100.6 100.0 99.8 99.2 101.1 100.7 100.6 100.1 103.0 111.6 115.6 128.4 101.2 101.5 101.8 102.2 ANNUAL 101.3 103.6 102.2 102.2 99.2 100.9 99.9 100.6 114.8 101.7 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 I II III IV -4.6 3.1 2.1 4.0 -3.0 6.7 5.2 7.5 1.6 3.4 3.1 3.4 1.1 1.6 2.0 1.7 -1.8 -1.2 0.1 -1.4 6.0 -1.4 -0.1 -2.2 7.3 -2.4 -0.4 -2.4 6.3 -1.7 -0.2 -2.2 -24.4 37.9 15.2 52.4 3.4 1.0 1.1 1.8 ANNUAL 1.3 3.6 2.2 2.2 -0.8 0.9 -0.1 0.6 14.8 1.7 ---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 I II III IV 1.0 1.6 1.3 1.1 2.7 3.7 4.0 4.0 1.6 2.1 2.7 2.9 2.9 2.3 1.7 1.6 -0.3 -0.8 -1.1 -1.1 1.8 0.7 0.4 0.5 0.2 0.2 -1.1 0.4 1.4 0.6 0.0 0.5 5.6 13.8 23.2 16.3 1.7 1.6 1.7 1.8 ANNUAL 1.3 3.6 2.2 2.2 -0.8 0.9 -0.1 0.6 14.8 1.7 ---------------------------------------------------------------------------------------------------------See footnotes following table 6. August 14, 1996 Source: Bureau of Labor Statistics
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