The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
USDL 00-253 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 8:30 A.M. EDT, WEDNESDAY, SEPTEMBER 6, 2000. Internet address: Historical, technical information: Current data: Media contact: http://stats.bls.gov/lprhome.htm (202) 691-5606 (202) 691-5200 (202) 691-5902 PRODUCTIVITY AND COSTS Second Quarter 2000 The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised productivity data--as measured by output per hour of all persons--for the second quarter of 2000. The seasonally adjusted annual rates of productivity change in the second quarter were: 6.5 percent in the business sector and 5.7 percent in the nonfarm business sector. In both sectors, increases in productivity were larger than reported on Aug. 8, reflecting both upward revisions in output and downward revisions in hours of all persons. (See table C.) In manufacturing, the revised productivity changes in the second quarter were: 5.4 percent in manufacturing, 10.6 percent in durable goods manufacturing, and -0.8 percent in nondurable goods manufacturing. In total manufacturing, the change in productivity was revised upward compared with the preliminary estimate. Output and hours in manufacturing, which includes about 17 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 measures are summarized in table A and appear in detail in tables 1 through 5; the differences between these measures and the preliminary second-quarter figures issued on Aug. 8 are shown in table C. 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 indexes of industrial production independently prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources. ------------------------------------------------------------------------Table A. Productivity and costs: Revised second-quarter 2000 measures (Seasonally adjusted annual rates) ------------------------------------------------------------------------Real Hourly hourly Unit Produccompen- compenlabor Sector tivity Output Hours sation sation costs ------------------------------------------------------------------------Percent change from preceding quarter Business 6.5 5.9 -0.6 6.4 2.7 -0.1 Nonfarm business 5.7 6.1 0.4 5.3 1.7 -0.4 Manufacturing 5.4 7.3 1.9 3.3 -0.3 -2.0 Durable 10.6 14.4 3.4 2.9 -0.7 -7.0 Nondurable -0.8 -1.3 -0.5 3.7 0.1 4.5 ------------------------------------------------------------------------Percent change from same quarter a year ago Business 5.1 6.9 1.7 4.7 1.5 -0.4 Nonfarm business 5.2 7.0 1.8 4.7 1.5 -0.4 Manufacturing 7.0 6.5 -0.4 4.6 1.3 -2.2 Durable 9.7 10.5 0.7 4.7 1.4 -4.6 Nondurable 3.6 1.5 -2.0 4.3 1.0 0.6 ------------------------------------------------------------------------- Business From the first to the second quarter of 2000, business sector productivity rose at a 6.5 percent annual rate, as output increased 5.9 percent and hours of all persons engaged in the sector decreased 0.6 percent (table A). In the previous quarter, productivity had increased 1.6 percent, reflecting a 5.3-percent increase in output and a 3.7-percent increase in hours (table 1). A rise in hourly compensation of 6.4 percent in the second quarter was the largest increase in that measure since the fourth quarter of 1997, when it rose 6.5 percent (seasonally adjusted annual rates). Hourly compensation includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Real hourly compensation, which takes into account changes in consumer prices, increased at a 2.7 percent annual rate in the second quarter of 2000, after falling at a 0.4 percent annual rate in the first quarter. Changes in unit labor costs reflect changes in both hourly compensation and productivity. Unit labor costs decreased 0.1 percent in the second quarter of 2000, after rising 1.9 percent in the first quarter (seasonally adjusted annual rates). The implicit price deflator for the business sector rose 2.6 percent in the second quarter due to a 7.1-percent rise in unit nonlabor payments, which was more than enough to offset the slight drop in unit labor costs. Nonfarm business Productivity in the nonfarm business sector increased 5.7 percent during the second quarter of 2000, as output increased 6.1 percent and hours of all persons rose 0.4 percent (table A). The increase in hours was the smallest since the first quarter of 1996, when hours decreased 0.1 percent. In the first quarter of 2000, nonfarm productivity had increased 1.9 percent, as output and hours grew 5.2 percent and 3.2 percent, respectively (table 2). Hourly compensation grew at a 5.3 percent annual rate in the second quarter of 2000, following a 3.9 percent increase in the first quarter. When the rise in consumer prices is taken into account, real hourly compensation increased 1.7 percent in the second quarter of 2000. In the second quarter of 2000, unit labor costs decreased 0.4 percent in the nonfarm business sector. This measure had increased 1.9 percent in the first quarter. Unit nonlabor payments grew 6.6 percent in the second quarter of 2000, and the implicit price deflator for nonfarm business output rose 2.3 percent (seasonally adjusted annual rates). Manufacturing In the second quarter of 2000, productivity increased 5.4 percent in manufacturing, as output grew 7.3 percent and hours of all persons rose 1.9 percent (seasonally adjusted annual rates). The second-quarter increase in output per hour was due entirely to a 10.6 percent productivity gain in the durable goods sector, as output per hour dropped 0.8 percent in the nondurable goods sector (tables 3, 4, and 5). In durable goods, output grew 14.4 percent, and hours rose 3.4 percent. In contrast, nondurable goods output and hours both fell--1.3 and 0.5 percent, respectively. Hourly compensation of all manufacturing workers increased 3.3 percent during the second quarter of 2000, reflecting a 2.9 percent rise in hourly compensation in durable goods industries and a 3.7 percent increase in the nondurable goods sector. Real hourly compensation in the total manufacturing sector fell off slightly, by 0.3 percent in the second quarter, reflecting a decline of 0.7 percent in durable goods and a 0.1-percent rise in nondurable goods. The decline in real hourly compensation in manufacturing was the first in this series since a 0.8-percent drop in the second quarter of 1997. Unit labor costs in manufacturing dropped quarter of 2000. Trends in the two subsectors fell 7.0 percent in durable goods and rose 4.5 The decline in unit labor costs in the durable the third consecutive drop in this series. 2.0 percent in the second differed; unit labor costs percent in nondurable goods. goods manufacturing sector was Nonfinancial corporations Preliminary second-quarter 2000 measures of productivity and costs also were announced today for nonfinancial corporations (tables B and 6). Productivity increased 5.0 percent during the second quarter, as output rose 5.9 percent and hours increased 0.9 percent (seasonally adjusted annual rates). Nonfinancial corporations include all corporations doing business in the United States except those classified as depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. ---------------------------------------------------------------------------Table B. Nonfinancial corporations: Preliminary second-quarter 2000 productivity and cost measures (Seasonally adjusted annual rates) ---------------------------------------------------------------------------Real Hourly hourly Unit Implicit Produccompen- compen- labor Unit price Period tivity Output Hours sation sation costs profits deflator ---------------------------------------------------------------------------Percent change from preceding quarter 2000 II 5.0 5.9 0.9 5.6 1.9 0.6 13.5 2.4 ---------------------------------------------------------------------------Percent change from same quarter a year ago 2000 II 4.8 7.1 2.2 4.5 1.2 -0.3 5.6 1.0 ---------------------------------------------------------------------------- Hourly compensation rose 5.6 percent largest rise since a 5.7-percent increase When the rise in consumer prices is taken compensation increased 1.9 percent in the in the second quarter, the in the fourth quarter of 1997. into account, real hourly second quarter of 2000 (table 6). Unit labor costs for nonfinancial corporations increased 0.6 percent in the second quarter of 2000, after declining in the two previous quarters. Unit profits rose 13.5 percent in the second quarter, marking the second consecutive quarter with a two-digit increase. The implicit price deflator for nonfinancial corporate output rose 2.4 percent in the second quarter of 2000. Revised Measures Current and previous measures for the second quarter of 2000 for the business, nonfarm business, and manufacturing sectors are compared in table C. The quarterly movements differ from those reported on Aug. 8 based on information then available. In the business and nonfarm business sectors, upward changes in output and downward revisions to hours led to larger increases in productivity than previously reported. In the manufacturing sector, productivity also was revised up, as an upward revision to output more than offset an upward revision to hours. ---------------------------------------------------------------------Table C. Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rate ---------------------------------------------------------------------Real Hourly hourly Unit Produccompen- compenlabor Sector tivity Output Hours sation sation costs ----------------------------------------------------------------------Second quarter 2000 Business: Previous 6.2 5.7 -0.4 6.3 2.6 0.1 Current 6.5 5.9 -0.6 6.4 2.7 -0.1 Nonfarm business: Previous 5.3 5.9 0.5 5.3 1.6 -0.1 Current 5.7 6.1 0.4 5.3 1.7 -0.4 Manufacturing: Previous 5.1 7.0 1.7 4.4 0.8 -0.7 Current 5.4 7.3 1.9 3.3 -0.3 -2.0 ----------------------------------------------------------------------- Next release date The next release of Productivity and Costs is scheduled for 8:30 AM EST, Thursday, Nov. 2, 2000. Preliminary third-quarter measures for business, nonfarm business, and manufacturing will be released at that time. TECHNICAL NOTES Labor Hours: Hours data for the labor productivity and cost measures include hours for all persons working in the sector--wage and salary workers, the self-employed, and unpaid family workers. The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on the number of jobs held by wage and salary workers in nonfarm establishments. The CES also provides average weekly paid hours of production and nonsupervisory workers in these establishments. Average weekly paid hours of nonproduction and supervisory workers are estimated by the Office of Productivity and Technology. 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 77 percent of the value of GDP in 1996. Nonfarm business, which also excludes farming, accounted for about 76 percent of GDP in 1996. Annual indexes for manufacturing and its durable and nondurable goods components 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 53 percent of the value of GDP in 1996. 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 sensoryimpaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service number: 1-800-877-8339. 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 1998 1999 I II III IV 109.7 110.0 110.6 111.6 126.8 127.7 128.9 131.0 115.6 116.1 116.6 117.4 117.1 118.5 120.0 121.4 102.9 103.8 104.7 105.5 106.7 107.7 108.5 108.8 116.4 115.1 114.6 114.6 110.3 110.5 110.7 110.9 ANNUAL 110.5 128.6 116.4 119.3 104.3 107.9 115.2 110.6 I II III IV 112.6 112.8 114.2 116.3 132.3 133.1 135.3 138.5 117.5 118.0 118.5 119.1 123.0 124.5 126.1 127.3 106.4 106.9 107.6 107.8 109.3 110.4 110.5 109.5 115.1 114.1 114.3 116.8 111.4 111.8 111.9 112.2 ANNUAL 114.0 134.8 118.3 125.2 107.3 109.9 115.1 111.8 2000 I 116.7 140.3 120.2 128.4 107.7 110.0 118.2 113.0 II r118.6 r142.3 r120.0 130.4 r108.5 110.0 r120.2 113.7 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1998 1999 I II III IV 4.7 1.1 2.1 3.9 7.9 2.9 3.7 6.8 3.1 1.7 1.5 2.8 6.2 5.1 5.1 4.8 5.5 3.5 3.6 3.2 1.5 3.9 3.0 0.9 -1.5 -4.2 -1.9 0.2 0.3 0.7 1.1 0.6 ANNUAL 2.7 5.0 2.3 5.3 3.9 2.5 -1.7 0.8 I II III IV 3.3 0.9 4.9 7.7 3.8 2.6 6.6 9.9 0.5 1.7 1.7 2.1 5.2 5.0 5.3 3.8 3.6 1.7 2.6 0.9 1.9 4.1 0.4 -3.6 1.8 -3.5 0.7 9.0 1.9 1.2 0.5 1.0 ANNUAL 3.1 4.8 1.6 5.0 2.9 1.8 0.0 1.1 2000 I 1.6 5.3 3.7 3.5 -0.4 1.9 4.8 3.0 II r6.5 r5.9 r-0.6 r6.4 r2.7 r-0.1 r7.1 r2.6 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1998 1999 2000 I II III IV 3.2 2.5 2.1 2.9 5.8 4.7 4.4 5.3 2.5 2.1 2.2 2.3 4.5 5.5 5.7 5.3 3.1 4.0 4.3 4.0 1.2 2.9 3.5 2.3 0.9 -2.4 -3.3 -1.9 1.1 0.8 0.8 0.7 ANNUAL 2.7 5.0 2.3 5.3 3.9 2.5 -1.7 0.8 I II III IV 2.6 2.5 3.2 4.1 4.3 4.2 4.9 5.7 1.6 1.6 1.7 1.5 5.1 5.0 5.1 4.8 3.5 3.0 2.8 2.2 2.4 2.4 1.8 0.7 -1.0 -0.9 -0.2 1.9 1.1 1.2 1.0 1.1 ANNUAL 3.1 4.8 1.6 5.0 2.9 1.8 0.0 1.1 I 3.7 6.1 2.3 4.4 1.2 0.7 2.7 1.4 II r5.1 6.9 1.7 4.7 r1.5 r-0.4 r5.4 1.8 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. September 6, 2000 r=revised Source: Bureau of Labor Statistics Table 2. Nonfarm business sector: and prices, seasonally adjusted Productivity, hourly compensation, unit labor costs, 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 1998 1999 I II III IV 109.3 109.8 110.3 111.2 127.1 128.1 129.2 131.4 116.3 116.7 117.2 118.1 116.4 117.9 119.4 120.8 102.3 103.2 104.2 104.9 106.5 107.5 108.3 108.5 117.4 116.3 115.8 115.8 110.5 110.7 111.0 111.2 ANNUAL 110.2 129.0 117.1 118.6 103.8 107.7 116.3 110.8 I II III IV 112.0 112.1 113.6 115.8 132.6 133.4 135.6 138.9 118.4 118.9 119.4 120.0 122.1 123.6 125.2 126.5 105.7 106.1 106.8 107.2 109.0 110.2 110.3 109.3 116.7 115.7 116.1 118.6 111.8 112.2 112.4 112.7 ANNUAL 113.4 135.1 119.2 124.4 106.5 109.7 116.8 112.3 2000 I 116.3 140.7 120.9 127.8 107.2 109.8 120.1 113.6 II r118.0 r142.8 r121.0 129.4 r107.7 r109.7 r122.1 114.2 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1998 1999 I II III IV 4.5 1.6 1.8 3.6 8.2 3.1 3.7 6.8 3.5 1.5 1.8 3.1 6.1 5.3 5.2 4.5 5.3 3.8 3.7 2.8 1.5 3.6 3.3 0.8 -1.4 -3.8 -1.8 0.2 0.4 0.7 1.3 0.6 ANNUAL 2.6 5.1 2.4 5.1 3.7 2.4 -1.4 0.9 I II III IV 2.6 0.6 5.2 8.0 3.6 2.4 7.0 10.0 1.0 1.8 1.7 1.8 4.5 5.0 5.5 4.2 2.8 1.7 2.8 1.3 1.8 4.3 0.3 -3.5 2.9 -3.1 1.3 8.9 2.2 1.5 0.6 1.0 ANNUAL 2.9 4.8 1.8 4.8 2.7 1.8 0.4 1.3 2000 I 1.9 5.2 3.2 3.9 0.0 1.9 5.2 3.2 II r5.7 r6.1 r0.4 5.3 r1.7 r-0.4 r6.6 r2.3 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1998 1999 2000 I II III IV 3.0 2.5 2.1 2.9 5.8 4.8 4.6 5.4 2.7 2.3 2.4 2.5 4.3 5.3 5.7 5.3 2.9 3.8 4.2 3.9 1.2 2.8 3.5 2.3 1.3 -2.1 -3.1 -1.7 1.2 0.9 0.9 0.8 ANNUAL 2.6 5.1 2.4 5.1 3.7 2.4 -1.4 0.9 I II III IV 2.4 2.2 3.0 4.1 4.3 4.1 4.9 5.7 1.8 1.9 1.9 1.6 4.9 4.8 4.8 4.8 3.3 2.8 2.6 2.2 2.4 2.6 1.8 0.7 -0.7 -0.5 0.3 2.4 1.2 1.4 1.2 1.3 ANNUAL 2.9 4.8 1.8 4.8 2.7 1.8 0.4 1.3 I 3.9 6.1 2.1 4.6 1.5 0.7 3.0 1.6 II r5.2 7.0 1.8 4.7 r1.5 -0.4 r5.5 r1.8 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. September 6, 2000 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: seasonally adjusted Productivity, hourly compensation, and unit labor costs, 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 1998 1999 I II III IV 121.3 122.7 125.1 126.8 128.5 129.5 130.7 132.6 106.0 105.6 104.5 104.5 115.2 116.6 118.1 119.4 101.2 102.1 103.0 103.7 95.0 95.1 94.4 94.1 ANNUAL 123.9 130.3 105.2 117.3 102.6 94.6 I II III IV 128.9 130.4 131.9 135.1 133.4 135.0 136.5 138.9 103.5 103.5 103.5 102.8 120.7 122.4 124.1 125.5 104.4 105.1 105.9 106.4 93.6 93.8 94.1 92.9 ANNUAL 131.6 136.0 103.3 123.2 105.5 93.6 2000 I 137.7 141.3 102.6 127.0 106.5 92.2 II r139.5 r143.8 r103.1 r128.0 r106.5 r91.7 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1998 1999 I II III IV 3.9 4.8 8.1 5.6 4.0 3.2 3.7 5.7 0.1 -1.6 -4.1 0.1 6.8 5.0 5.0 4.6 6.0 3.4 3.5 2.9 2.8 0.2 -2.8 -1.0 ANNUAL 5.4 5.1 -0.3 5.3 3.9 -0.1 I II III IV 6.8 4.8 4.5 10.2 2.5 4.9 4.6 7.1 -4.0 0.1 0.1 -2.8 4.5 5.7 5.9 4.6 2.8 2.5 3.2 1.7 -2.2 0.9 1.4 -5.1 ANNUAL 6.2 4.3 -1.7 5.0 2.9 -1.1 2000 I 7.9 7.1 -0.7 4.6 0.7 -3.0 II r5.4 r7.3 r1.9 r3.3 r-0.3 r-2.0 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1998 1999 2000 I II III IV 5.3 5.5 5.4 5.6 6.3 5.5 4.6 4.2 0.9 0.0 -0.7 -1.4 4.4 5.6 5.9 5.3 3.0 4.0 4.4 4.0 -0.9 0.1 0.5 -0.2 ANNUAL 5.4 5.1 -0.3 5.3 3.9 -0.1 I II III IV 6.3 6.3 5.4 6.5 3.8 4.2 4.4 4.8 -2.4 -2.0 -0.9 -1.7 4.8 4.9 5.2 5.2 3.2 2.9 2.9 2.5 -1.5 -1.3 -0.2 -1.3 ANNUAL 6.2 4.3 -1.7 5.0 2.9 -1.1 I 6.8 5.9 -0.8 5.2 2.0 -1.5 II r7.0 r6.5 -0.4 r4.6 r1.3 r-2.2 -------------------------------------------------------------------------------------------------See footnotes following Table 6. September 6, 2000 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: seasonally adjusted Productivity, hourly compensation, and unit labor costs, 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 1998 1999 I II III IV 129.6 131.9 136.1 138.9 144.5 146.7 150.0 153.5 111.5 111.2 110.2 110.5 112.6 113.8 115.1 116.6 99.0 99.6 100.4 101.3 86.9 86.2 84.5 83.9 ANNUAL 134.1 148.7 110.8 114.5 100.1 85.4 I II III IV 141.9 145.1 147.1 150.7 154.7 158.2 161.5 164.3 109.0 109.0 109.8 109.0 118.1 120.1 121.9 123.6 102.2 103.1 104.0 104.7 83.2 82.7 82.8 82.0 ANNUAL 146.2 159.7 109.2 120.9 103.6 82.7 2000 I 155.3 169.0 108.8 124.8 104.7 80.4 II r159.2 r174.7 109.7 r125.7 r104.5 r78.9 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1998 1999 I II III IV 5.5 7.4 13.3 8.4 7.2 6.1 9.3 9.8 1.6 -1.2 -3.5 1.3 6.2 4.2 4.6 5.3 5.4 2.6 3.1 3.7 0.7 -3.0 -7.7 -2.9 ANNUAL 8.0 8.5 0.5 5.2 3.8 -2.6 I II III IV 8.9 9.4 5.6 10.0 3.1 9.3 8.7 7.1 -5.4 -0.1 2.9 -2.7 5.4 6.8 6.2 5.7 3.7 3.5 3.5 2.8 -3.3 -2.4 0.6 -3.9 ANNUAL 9.0 7.4 -1.5 5.6 3.4 -3.1 2000 I 12.7 11.8 -0.8 3.9 0.0 -7.9 II r10.6 r14.4 3.4 r2.9 r-0.7 r-7.0 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1998 1999 2000 I II III IV 7.4 7.5 8.3 8.6 9.4 8.4 8.2 8.1 1.9 0.8 -0.1 -0.5 4.5 5.5 5.7 5.1 3.1 4.0 4.2 3.7 -2.7 -1.9 -2.4 -3.3 ANNUAL 8.0 8.5 0.5 5.2 3.8 -2.6 I II III IV 9.5 10.0 8.1 8.5 7.0 7.8 7.7 7.0 -2.2 -2.0 -0.4 -1.4 4.9 5.5 5.9 6.0 3.3 3.5 3.6 3.4 -4.2 -4.1 -2.0 -2.3 ANNUAL 9.0 7.4 -1.5 5.6 3.4 -3.1 I 9.4 9.2 -0.2 5.7 2.5 -3.4 II r9.7 r10.5 0.7 r4.7 r1.4 r-4.6 -------------------------------------------------------------------------------------------------See footnotes following Table 6. September 6, 2000 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: seasonally adjusted Productivity, hourly compensation, and unit labor costs, 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 1998 1999 I II III IV 115.6 116.0 116.7 117.4 114.0 113.9 113.1 113.4 98.7 98.2 97.0 96.6 118.3 120.1 121.8 122.7 104.0 105.1 106.2 106.6 102.4 103.5 104.4 104.6 ANNUAL 116.4 113.6 97.6 120.7 105.6 103.7 I II III IV 118.5 118.2 119.2 122.3 113.9 113.6 113.5 115.5 96.1 96.2 95.2 94.5 123.7 124.9 126.4 127.2 107.1 107.2 107.8 107.8 104.4 105.7 106.0 104.0 ANNUAL 119.5 114.1 95.5 125.5 107.5 105.0 2000 I 122.7 115.7 94.4 129.0 108.3 105.2 II r122.4 r115.4 94.2 r130.2 r108.3 r106.4 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1998 1999 I II III IV 2.6 1.7 2.2 2.5 0.5 -0.3 -2.8 0.8 -2.1 -2.0 -4.9 -1.7 7.6 6.2 5.7 3.1 6.8 4.7 4.2 1.5 4.8 4.4 3.5 0.6 ANNUAL 2.8 1.3 -1.5 5.3 3.9 2.4 I II III IV 3.7 -1.0 3.7 10.5 1.8 -0.8 -0.5 7.3 -1.8 0.3 -4.0 -2.9 3.2 3.9 4.9 2.6 1.6 0.7 2.2 -0.2 -0.5 4.9 1.2 -7.2 ANNUAL 2.7 0.5 -2.1 4.0 1.9 1.3 2000 I 1.3 0.7 -0.6 5.9 2.0 4.5 II r-0.8 r-1.3 r-0.5 r3.7 r0.1 r4.5 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1998 1999 2000 I II III IV 3.5 3.5 2.1 2.3 3.1 2.3 0.5 -0.5 -0.4 -1.2 -1.6 -2.7 4.0 5.5 6.1 5.7 2.6 4.0 4.6 4.3 0.5 1.9 3.9 3.3 ANNUAL 2.8 1.3 -1.5 5.3 3.9 2.4 I II III IV 2.5 1.8 2.2 4.1 -0.2 -0.3 0.3 1.9 -2.6 -2.0 -1.8 -2.1 4.6 4.0 3.8 3.6 3.0 2.0 1.5 1.1 2.0 2.1 1.5 -0.5 ANNUAL 2.7 0.5 -2.1 4.0 1.9 1.3 I 3.5 1.6 -1.8 4.3 1.2 0.7 II r3.6 r1.5 r-2.0 r4.3 r1.0 r0.6 -------------------------------------------------------------------------------------------------See footnotes following Table 6. September 6, 2000 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: and prices, seasonally adjusted Productivity, hourly compensation, unit labor costs, unit profits, Output Hourly Real Unit Total Unit Implicit Year per allcompenhourly Unit nonunit proprice and employee Employee sation compenlabor labor costs fits deflator quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------Indexes 1992=100 1998 1999 I II III IV 112.3 113.4 114.9 115.8 132.4 134.2 136.6 138.6 117.9 118.3 118.9 119.6 115.2 116.6 118.0 119.3 101.2 102.1 103.0 103.7 102.6 102.8 102.7 103.0 100.5 100.9 100.2 101.6 102.0 102.3 102.1 102.6 150.4 147.2 151.4 144.5 106.1 106.1 106.2 106.2 ANNUAL 114.2 135.5 118.6 117.4 102.7 102.8 100.8 102.2 148.3 106.1 I II III IV 117.1 118.2 119.7 121.5 140.6 142.5 145.0 148.1 120.0 120.5 121.1 122.0 120.9 122.4 124.0 125.3 104.6 105.1 105.8 106.1 103.2 103.5 103.6 103.1 100.7 101.4 102.1 102.5 102.5 103.0 103.2 103.0 149.7 147.5 143.3 145.7 106.5 106.7 106.6 106.6 ANNUAL 119.2 144.0 120.9 123.2 105.5 103.4 101.7 102.9 146.5 106.6 2000 I 122.3 150.4 122.9 126.1 105.8 103.1 103.3 103.1 150.9 107.2 II 123.8 152.6 123.2 127.8 106.3 103.2 103.8 103.4 155.7 107.8 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1998 1999 I II III IV 2.6 4.0 5.2 3.4 6.1 5.6 7.4 5.9 3.4 1.6 2.0 2.5 5.4 5.0 5.0 4.4 4.6 3.4 3.5 2.8 2.7 1.0 -0.2 1.0 0.3 1.6 -2.5 5.5 2.1 1.1 -0.8 2.2 -14.7 -8.3 11.9 -17.0 -0.1 0.0 0.6 -0.3 ANNUAL 3.6 6.5 2.8 4.8 3.4 1.2 0.0 0.8 -5.3 0.1 I II III IV 4.4 3.8 5.1 6.1 5.7 5.5 7.2 9.0 1.3 1.7 2.0 2.8 5.3 5.0 5.4 4.1 3.6 1.8 2.7 1.2 0.9 1.2 0.3 -1.8 -3.5 3.0 2.6 1.9 -0.3 1.7 0.9 -0.9 15.1 -5.6 -11.1 7.1 1.4 0.8 -0.6 0.0 ANNUAL 4.3 6.3 1.9 4.9 2.8 0.6 0.9 0.7 -1.2 0.4 2000 I 2.9 6.2 3.2 2.7 -1.1 -0.2 3.0 0.7 14.9 2.3 II 5.0 5.9 0.9 5.6 1.9 0.6 2.0 0.9 13.5 2.4 ---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1998 1999 2000 I II III IV 3.2 3.8 3.6 3.8 6.8 6.7 6.4 6.2 3.5 2.8 2.7 2.4 4.0 5.0 5.3 4.9 2.6 3.5 3.8 3.6 0.8 1.1 1.6 1.1 -0.1 -0.5 -0.6 1.2 0.5 0.7 1.0 1.1 -2.7 -5.2 -5.6 -7.7 0.1 0.0 0.1 0.0 ANNUAL 3.6 6.5 2.8 4.8 3.4 1.2 0.0 0.8 -5.3 0.1 I II III IV 4.2 4.2 4.2 4.8 6.1 6.1 6.1 6.9 1.8 1.9 1.9 1.9 4.9 4.9 5.0 5.0 3.3 2.9 2.7 2.4 0.7 0.7 0.8 0.1 0.2 0.5 1.8 0.9 0.5 0.7 1.1 0.3 -0.5 0.2 -5.4 0.9 0.4 0.6 0.3 0.4 ANNUAL 4.3 6.3 1.9 4.9 2.8 0.6 0.9 0.7 -1.2 0.4 I 4.5 7.0 2.4 4.3 1.2 -0.1 2.6 0.6 0.8 0.6 II 4.8 7.1 2.2 4.5 1.2 -0.3 2.4 0.4 5.6 1.0 ---------------------------------------------------------------------------------------------------------See footnotes following Table 6. September 6, 2000 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 within 40 days of the close of the reference period; revisions appear 30 days later and second revisions after an additional 60 days. In the business sector, the third publication (second revision) of a quarterly index of output per hour of all persons has differed from the initial value by between –1.7 and +2.4 index points approximately 95 percent of the time. This interval is based on the performance of this measure between the fourth quarter of 1995 and the first quarter of 2000. 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 selfemployed. (2) The change for recent quarters is based on the Consumer Price Index for all urban consumers (CPI-U). The trend from 1978-1999 is based on the Consumer Price Index research series (CPI-U-RS). (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 costs include 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 costs are the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.
@FedFRASER