Full text of Productivity and Costs : Third Quarter 1986

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News

Bureau of Labor Statistics

United States
Department
of Labor
Washington, D.C. 20212

Historical, technical
information: (202) 523-9261
Current data : (202) 523-1221 or 1208
Media contact: (202) 523-1913

USDL 86-438
For Release 10:00 PK EST
Wednesday, October 29, 1986

PRODUCTIVITY MID
Third Quarter 1986

The Bureau of Labor Statistics of the U.S. Department of Labor todafc
reported preliminary productivity data—as measured by output per hour of all
persons—for the third quarter of 1986. Based on information now available,
the seasonally-adjusted anfitml rates of productivity increase in the third
quarter were:
0.1
0.2
4.2
3.8
4.9

percent
percent
percent
percent
percent

in
in
in
in
in

the business sector*
the nonfarm business sector,
manufacturing,
durable goods manufacturing, and
nondurable goods manufacturing.

Third-quarter measures are summarized in table A and appear in detail
in tables 1 through 5.
Business
Productivity increased at a 0,1 percent annual rate during the third
quarter of 1986 in the business sector, as output rose 2.5 percent and hours of
all persons engaged in the sector increased 2.4 percent (seasonally adjusted
annual rates).
Although productivity gains in both the second and third
cjuarter were small, the third-quarter results reflect stronger underlying gains
in both output and hours. During the second quarter of 1986, output rose only
0.3 percent and hours of all persons declined 0.2 percent (table 1).
Hourly compensation increased at a 2.9 percent annual rate during the
third quarter of 1986, compared with a 2.8 percent gain during the second
quarter.
This marked the third quarter during which hourly compensation
increases were smaller than 3.0 percent, and only the second time since 1960 so
little growth occurred over a 9-month period, this measure includes wages and
salaries, supplements, employer contributions to employees-benefit plans, and
taxes. Unit labor costs, which reflect changes in hourly compensation and
productivity, increased at a 2.8 percent annual rate during the third quarter,
compared with a 2.3 percent increase during the second quarter.
Real hourly compensation, which takes into account the increase in the
Consumer Price Index for All Urban Consumers (CPt-U), increased 0.3 percent in
the third quarter. Real hourly compensation increased 4.5 prcent in the second
quarter of 1986, partly reflecting falling consumer prices.




-2Table A. Productivity and costs: Preliminary third quarter 1986 measures
(Seasonally adjusted annual rates)

Sector

Productivity

Output

Hours

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

0.3
-0.2
0.1
0.1
0.4

2.8
2.1
-1.5
-1.1
-l.R

CO

2.8
2.5

:r*-<<

0.1
0.9

--<

-0,9

»*«™;

Percent change from preceding quarter
Business
Nonfarm business
Manufacturing
Durable
Nondurable

0.1
0.2
4.2
3.8
4.9

2.5
3.2
3.4
1.8
5.9

2.4
3.0
-0.8
-2.0
0.9

2.9
2.3
2.7
2.7
3.0

r"T*T|
c^ny*.

CD

Percent change from same quarter a year ago
Business
Nonfann business
Manufacturing
Durable
Nondurable

0.1
0.3
2.4
1.9
3,5

2.1
2.5
2.1
0.5
4.7

2.0
2.1
-0.3
-1.3
1.1

3.0
2.8
2.6
2.7
2.5

1.3
1.2
0.9
1.1
0,8

The implicit price deflator for the business sector, which
changes in unit labor costs and unit nonlabor payments, increased 3.1 percent
in the third quarter.
Nonfarm business
Productivity increased 0.2 percent in the nonfarm business sector during
the third quarter of 1986, as output rose 3.2 percent and hours of all persons
-^employees, proprietors, and unpaid family workers—increased 3.0 percent. As
in the ifere comprehensive business sector, output and hours grew more strongly
in the third than in the second quarter, althou^i productivity gains were small
(table 2).
Hourly compensation increased a modest 2.3 percent in the third quarter,
but fell 0.2 percent when the increase in the CPI-U is taken into account.
Although hourly compensation increased at the same rate in the second and third
quarters, real hourly compensation moved quite differently, reflecting the
changes in the CPI-U. Unit labor costs increased 2.1 percent in the third
quarter.
The imgilicit price deflator, for the nonfarm business sector rose 3.1
percent in the third quarter, compared with a 1.0 percent increase one quarter
earlier.




-3lianafac taring
Productivity increased at a 4.2 percent seasonally adjusted annual rate in
manufacturing in the third quarter of 1986, as output rose 3,4 percent and
hours of all persons decreased 0.8 percent. During the second quarter, output
and hours both declined (table 3). Productivity grew in both durables and
nondurables, bui. hours of all persons declined in durables while increasing
slightly in the nondurable subsector (nearly half again as many people are
employed in producing durables as are in nondurable goods). Output grew more
slowly among durable goods industries (tables 4,5).
Hourly compensation of manufacturing workers increased 2.7 percent during
the third quarter, or 0.1 percent when the increase in consumer prices is taken
into account. Unit labor costs fell at a 1.5 percent annual rate, compared
with a 0.5 percent decrease during the second quarter of 1986. This was the
third quarter during which labor costs have fallen in manufacturing.
Next release date
The
AM EST,
measures
measures

next issue of Productivity and Costs is scheduled for release at 10:00
Tuesday, December 2, 1986, and will contain revised third-quarter
for business, nonfarm business* and manufacturing and preliminary
for nonfinaneial corporations.




-4-

TBOWICAL NOTES

Business sector output is equal to gross national product in constant 1982
dollars, less the rest-of~the-world sector, general government, output of
nonprofit institutions, output of paid employees of private households, rental
value of owner-occupied dwellings, and the statistical discrepancy in computing
the national income accounts. Corresponding exclusions are also made in labor
inputs. Business output has accounted for about 77 percent of gross national
product in recent years.
Total manufacturing measures are computed by sunning series prepared for the
durable and nondarables goods sectors.
The durable sector includes the following 2-digit SIC industries:
Primary
metals; fabricated metal products; nonelectrical machinery; electrical
machinery; transportation equipment; instruments; lumber and lumber products;
furniture and fixtures; stone, clay, and glass products; and miscellaneous
manufactures. The nondurable sector includes these 2-digit SIC industries:
Textile mill products, apparel products, leather and leather products, printing
and publishing, chemical and chemical products, petroleum products, rubber and
plastic products, food, and tobacco products.
Manufacturing output has accounted for about 24 percent of gross national
product in recent years,
Nonfinancial corporate output is equal to gross national product in constant
1982 dollars, less the rest-^of-the-world sector, general government,
unincorporated business, output of paid employees of private households and
nonprofit institutions, rental value of owner-occupied dwelling, the output of
corporations engaged in baking, finance, stock and commodity trading, and
credit and insurance agencies, and the statistical discrepancy in computing the
national income accounts. Nonfinancial corporate output has accounted for
about 59 percent of gross national product in recent years.
The productivity and associated cost measures in this news release describe the
relationship between output in real terms and the labor time involved in its
production. They shew the changes from period to period in the amount of goods
and services produced per hour* Although these measures relate output to hours
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; mangerial skill; and the
characteristics and effort of the work force.




-5-

Table 1. Business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted
Year atid
quarter

Output per
hour
of all persons

Output

Hours
of all
persons

Ccropensation per
hour(l)

Real
conpensa*
tion per
hour(2)

Unit
labor
cost

Unit nonlabor payments(3)

Inplicit
price
d@flatar(4)

Indexes 1977«100

1985

I
II
III
IV

ANNUAL

1986

I
II
III

105,7
106.4
107.3
106.4

121.3
122.3
123.5
123.8

114.8
115.0
115.2
116.4

172.3
174.5
176.4
178.0

98.4
98.7
99.1
99.0

163.1
164.0
164.4
167.3

158.3
160.0
161.4
159.6

161.4
162.6
163.4
164.6

106.4

122.7

115.3

175.3

98.8

164.8

159.7

163.0

107.3
r!07.4
p!07.4

125.3
r!25.4
p!26.2

116.8
rl!6.7
pi 17.5

179.1
180.4
p!81.7

99.2
100.3
plOO.4

167.0
r 168.0
p!69.1

162.2
161.9
p!63.4

165.3
r!65.8
pl67.1

Percent change from previous quarter at annual rate<5)

1985

1986

I
II
III

rr

0.9
2.7
3.4
-3.2

3.6
3.3
4.1
1.0

2.6
0.6
0.7
4.3

4.2
5.1
4.4
3.8

1.0
1.0
1.8
-0.5

3.3
2.4
1.0
7.2

1.6
4.2
3.7
-4.3

2.7
3.0
1.9
3.0

ANNUAL

1.0

3.3

2.2

4.3

0.7

3.2

2.2

2.9

I
II
III

3.3
rO.5
pO.l

4.7
rO.3
p2.5

1.4
r-0.2
p2.4

2.5
r2.8
p2.9

1.0
4.5
pO.3

-0.7
r2.3
p2.8

6.6
-0.7
p3.8

1.8
rl.2
p3.1

Percent change from corresponding quarter of previous year
1985

1986

I
II
III
IV

0.8
0.8
1.7
0.9

3.8
2.8
3.4
3.0

3.0
2.0
1.7
2.1

3.9
4.5
4.4
4.4

0.3
0.7
1.0
0.8

3.1
3.6
2.6
3.4

2.7
2.0
2.8
1.2

3.0
3.1
2.7
2.7

ANNUAL

1.0

3.3

2.2

4.3

0.7

3.2

2.2

2.9

I
II
III

1.5
rl.O
pO.l

3.3
r2.5
p2.1

1.8
1.6
p2.0

3.9
r3.4
p3.0

0.8
1.7 '
pi. 3

2.4
r2.4
p2.8

2.5
1.2
pi. 2

2.4
r2*0
p2.3

See footnotes following table 6.
r*revised
p-preliminary




October 29, 1986
Source: Bureau of Labor Statistics

-6-

Table 2.

Nonf^rm business sector: Productivity, hourly compensation, unit labor oast, and prices, seasonally adjusted

Year and
quarter

Output per
hour
of all persons

Output

Hours
of all
persons

Compensation per
hour(l)

Real
compensatlon per
hour(2)

Unit
labor
cost

Unit nonlabor payments(3)

Implicit
price
deflator (4)

Indexes 1977-100

1985

1<W>

I
II
[II
ttf

104.4
104.9
105.4
104.5

121.1
122.1
123.3
123.6

116.0
116.4
116.9
118.2

172.1
174.0
175.4
177.0

98.2
98.4
98.5
98.4

164.8
165.9
166.3
169.3

158.9
160.8
163.0
160.3

162.7
164.1
165.2
166.2

ANNUAL

104.8

122.5

116,9

174.6

98.4

166.7

160.6

164.6

I
II
til

105.$
r!05.7
plOS.8

12S.1
r!25.3
pi 26. 3

118.5
118.5
pU9.4

178.3
179.3
p!80.4

98.8
r99.8
p99.7

168.8
rl69.6
p!70.5

163.9
r!63.7
pl65.7

167.1
r!67.5
p!68.8

Percent change Craa. previous quarter at annual rate(5)
I
II
I£I
IV

0.3
1.8
2.2
-3,5

3.0
4.0

1.0

2.9
1.2
1.8
4.6

3.9
4.6
3.2
3.7

0.7
0.5
0.7
-0.6

3.6
2.7
1.0
7.4

2.5
4.7
5.7
-6.6

3.2
3.4
2.6
2.4

ANNUAL

0.5

3,0

2.6

4.0

0.4

3.5

2.9

3.3

19«*>

I
II
(U

4.3
rl>.5
pO,2

5.1
rO.6
p3.2

0.8
rO.l
p3.0

-1.2
3.1
1.6
r4,0
rl.8
r2. 3
p-0.2
p2.1
p2.3
—^—^i
Quarter of previous year
Percent change from cc>r responding

9.3
r-0.6
p5,0

2.3
rl.O
p3. 1

1985

I
It
til

tv

0.5
0.2
1.0
0.2

3.6
2.5
3.1
2.8

3,1
2.3
2.1
2.6

3.9
4.2
4.0
3.9

0.3
0.5
0.6
0.3

3.4
4.0
3.0
3.7

3.7
2.8
3.7
1.5

3.5
3.6
3.2
2.9

ANNUAL

0.5

3.0

2.6

4^0

0.4

3.5

2.9

3.3

I
II
III

1.2
rO.8
pO.3

3.3
r2.7
p2.5

2.1
1.8
p2.1

3.6
3.1
p2.8

0.5
1.4
pl.2

2.5
r2.2
p2.5

3.1
rl.8
pi. 6

2.7
r2.1
P 2.2

19B5

1986

See Cootrv^te.^ following t^ble 6.




3.2

October 29P 1986
Source: Bureau of Labor Statistics

Table 3, Manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Year and
quarter

Output per
hour
of all persons

Output
(6)

Hours
of all
persons

Conpensation per
hour(l)

Real
conpensation per
hour (2)

Unit
labor
cost

Indexes 1977-100
1985

I
II
III
IV
ANNUAL

1986

I
II
III

119.3
121.7
123.0
122.9

118.8
119.9
121.2
121.9

99.6
98.5
98.5
99.1

173.8
175»6
178.1
179.3

99.2
99.3
100.0
99.7

145.7
144.3
144.8
145.8

121.7

120.4

98.9

176.7

99.5

145.1

r!23.7
r!24.7
p!26.0

r!22.8
r!22.7
p!23.7

99.3
98.4
p98.2

180.2
181.4
pl82.6

99.8
100.9
plOl.O

r!45.7
r!45.5
p!44.9

Percent change from previous quarter at annual rate(5)
1985

1986

I
II
III
IV

3.9
8.2
4.4
-0.3

3.2
3.7
4.3
2.4

-0.6
-4.2
-0.1
2.7

5.5
4.3
5.6
2.8

2.2
0.3
3.0
-1.4

1.5
-3.6
1.2
3.0

ANNUAL

4.4

3.8

-0.5

5.0

1.4

0.6

I
II
III

r2.6
r3.2
p4.2

r3.0
r-0.4
p3.4

0.4
r-3.5
p-0.8

2.1
r2.7
p2.7

0.6
r4.4
pO.l

r-0.5
r-0.5
p-1.5

Percent change from corresponding quarter of previous year
1985

1986

I
II
III
IV

4.0
5.2
4.4
4.0

4.8
4.0
3.2
3.4

0.8
-1.2
-1.2
-0.6

5.1
5.3
5.3
4.5

1.4
1.6
1.9
1.0

1.1
0.1
0.9
0.5

ANNUAL

4.4

3.8

-0.5

5.0

1.4

0.6

I
II
III

r3.7
r2.5
p2.4

r3.4
r2.3
p2.1

-0.3
r-0.2
p-0.3

3.7
3.3
p2.6

0.6
1.6
pO.9

rO.O
rO.8
pO.l

See
footnotes following table 6.
rsrevised
preliminary




October 29, 1986
Source: Bureau of Labor Statistics

-8Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Year and .
quarter

Output per , Output
hour
'46)
of all persons

Hours
of aU
persons

Compensation per
hour(l)

, Real
' •; ."."
compensaUnit
tion -per '
labor
hour{2)
cost

Indexes 1977=100

1985

I
II
III
IV
ANNUAL

1986

121.4
124.4
126.3
126.4

122.6
124.1
125.6
126.4

100.9
99.8
99.5
100.0

172.0
173.2
176.5
.178.0

98.2
97.9
99.2
98.9

124.6

124.7

100.1

174.9

98.5

* 140.3

99.1
100.2
plOO.2

r!40.8
r!41.4
p!41.0

6.1
3.0
7.8
3.3

2.8
-1.0
5.1
-0.9

•''*'' "-1.9
r-6.61.6
r2.8

: -0.2

5.0

1.4

-0.6
r-4.8
p-2.0

2.2
r2.8
p2.7

0.7

r!27.1
r!27.4
p!28.6

I
II
III

rl26.9
r!25.7
p!26.2

99.9
98.7
p98.2

178.9
rl80.2
pl81.4

"

J

141.6
,139.2
"139.8
140.8

'•

Percent change from previous, quarter at annual rate(5)

1985

IV

.8.2
10.2
6.1
0.5

ANNUAL

6.8

I
II
- Ill

.

>',

:

7.2
5.1
4.9
2.7
6.6

-0.9 .
-4.6
• -1.1'
2.2

-1.7
• 1. *"

1986

I
II
III

r2.1
rl.O
,p3.8 ,'

rl.5
r-3.8
pi. 8

.:

r4.5
pO.l

'•-,.

rO.l

•••/

rl.7
p-1.1

Percent change from, corresponding quarter of previous year
1985

I
II
III
IV

6.5
r7.9
r6.8
6.2

8.7
7.4
5.4 .
5.0

2.0
-0.4
-1.2 .
-1.1

4.8
4.8
5.6
5.0

1.1
1.1
,,

"
;£»1
..
".r
.-^g,

r-1.7
-2.8

': ' .;/.•. -i.T''
i- ??!.!

. , . - , " '-'I,,.'..' :'.

ANNUAL

1986

I
II
III

6.8

6.6

-0.2

5.0

1.4

-1.7

r4.7
r2.4
pi. 9

r3.5
rl.3
pO.5

-1.1
-1.1 p-1.3

4.1
4.0
p2.7

0.9
2.3
pl.l

r-0.6
rl.6
pO.9

See footnotes following table 6*
r=revised
p=preliminary




October 29, 1986
Source: Bureau of Labor Statistics

-9Tablo 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Year and
quarter

Output per
hour
of ell persons

Output
(6)

Hours
of all
persons

Compensation per
hour(l)

Real
corapensation per
hour (2)

Unit
labor
cost

Indexes 1977*100

1985

1986

I
II
III
IV

116.0
117.5
118.0
117.6

113.2
113.6
114.5
115.1

97.6
96.7
97.0
97.9

176.5
179.4
180.4
181.3

100.8
101.5
101.3
100.8

152.1
152.7
152.8
154.1

ANNUAL

117.3

114.1

97.3

179.4

101.0

152.9

I
II
III

rl!8.6
r!20.7
p!22.1

rll6.7
rl!8.2
pl!9.9

98.3
r97.9
p98.2

182.2
183.5
p!84.9

100.9
102.1
p!02.2

rl53.6
r!52.1
p!51.4

Percent change from previous quarter at annual rate(5)

1985

1986

I
II
III
IV

-2.6
5.2
1*8
-1.4

-2.8
1.5
3.3

ANNUAL

I
II
III

1..9

-0.2
-3.5
1.5
3*4

4.4
6.9
2.1
1.9

1.2
2.8
-0.4
-2.3

7.2
1.7
0.3
3.4

0.7

-0.3

-1.0

5.0

1.4

4.3

r3.5
r7.0
p4.9

r5.6
r5.3
p5.9

2.0
r-1.6
pO.9

2.2
r2.9
p3.C

0.7
r4.6
pO.4

r-1.3
r-3.9
p-1.8

Percent change from corresponding quarter of previous year

1985

1986

I
II
III
IV

0.1
1.2
0.9
U.7

-0.9
-1.1
-0.3
1.0

-1.0
-2.3
-1.1
0.3

5.3
6.1
4.9
3.8

1.7
2.3
1.5
0.3

5.2
4.8
4.0
3.1

ANNUAL

0.7

-0.3

-1.0

5.0

1.4

4.3

I
II
III

r2.2
r2.7
p3.5

r3.1
r4.0
p4.7

0.8
1.3

3.3
2.3
P2.5

0.2
0.6
pO.8

rl.O
r-0.4
p-0.9

See footnotes following table 6*
r-revised
p-prwlirainary




pia

October 29, 1986
Source: Bureau of Labor Statistics

Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit profits, and
prices, seasonally adjusted
Output
Year
per alland
quarter employee
hour

Output

Employee Hourly
Real
hours canpensa- hourly
tion
ccmpen(1)
sation<2)

Unit
labor
cost

Unit
nonlabor
ccst(7)

Total
unit
cost
(8)

Unit Implicit
pro- price
fits deflator
(9)
(4)

Indexes 1977*100

1985

1986

I
II
III
IV

106.0
106.5
107.8
107.0

123.1
124.2
126.0
126.1

116.1
116.6
116.8
117.8

169.9
171.6
173.1
174.5

97.0
97.0
97.2
97.0

160.3
161.1
160.5
163.0

178.5
179.8
178.3
179.8

164.9
165.8
165.0
167.2

129.3
130.2
141.7
131.2

160.6
161.6
162.2
162.9

ANNUAL

106.8

124.8

116.9

172.3

97.0

161.2

179.1 -

165.8

133.1

161.8

106.9
r!06.8

126.9
r!26.6

118.7
118.5

175.4
r!76.1

97.1
97.9

164.0
r!64.8

168.3
r!68.6

131.7
r!32.3

164.0
r!64.3

I
II

181.1
r!79.9

Percent change fran previous quarter at annual rate(5)
1985

1986

I
II
III
IV

0.8
2.2
4.9
-2.8

3.2
3.7
5.9
0.5

2.4
1.4
1.0
3.4

3.6
4.2
3.4
3.3

0.6
0.2
0.9
-0.9

3.0
2.0
-1.4
6.3

2.2
3.0
-3.3
3.3

2.8
2.3
-1.9
5.5

-3.6
3.0
40.1
-26.4

2.2
2.3
1.7
1.7

ANNUAL

1.2

3.7

2.5

3.9

0.3

2.7

2.6

2.7

-0.2

2.4

I
II

-0.5
r-0.3

2.6

r-1.1

3.1
r^0.8

2.0
rl.6

0.5
r3.3

2.5
rl.9

3.1
r-2.7

2.7
rO.6

1.3
r2.0

2.5
rO.7

Percent change from corresponding quarter of previous year
1985

1986

I
II
III
IV

0.6
0.6
2.2
1.2

4.1
3.1
4.2
3.3

3.5
2.5
2.0
2.1

3.8
4.1
3.9
3.7

0.2
0.4
0.5
0.2

3.2
3.5
1.6
2.4

4.3
3.9
1.1
1.3

3.5
3.6
1.5
2.1

-3.8
-5.9
8.7
0.6

2.7
2.6
2.2
2.0

ANNUAL

1.2

3.7

2.5

3.9

0.3

2.7

2.6

2.7

-0.2

2.4

I
II

0.9
rO.3

3.2
r2.0

2.2
1.7

3.2
2.6

0.2
0.9

2.3
r2.3

1.5
rO.O

2.1
rl.7

1.8
rl.6

2.1
rl.7

See footnotes following table 6.
r«revised
p^preliminary




October 29, 1986

Source: Bureau of Labor Statistics

-11SOUPCE: Output data from Bureau of Economic Analysis, U.S. Department of
Commence, and the Federal Reserve Board. Compensation and hours data from the
Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of
Economic Analysis.
RELIABILITY:
Productivity and cost measures are regularly revised as more
complete information becomes available. Preliminary results are published 30
days after the close of the reference period; revisions appear 30 days later,
and second revisions after an additional 60 days. In the business sector, the
probability is 0.95 that the third publication (second revision) of a quarterly
index of output per hour of all persons will differ from the preliminary value
by between -1.7 and +1.9 index points.
Ihis interval is based on the
performance of this measure between the first quarter of 1976 and the second
quarter of 1985.
Footnotes, Tables 1-6
(1) Wages and salaries of the employees plus employers' contributions for
Social insurance and private benefit plans.
Bccept for nonfinancial
corporations, vrtiere there are no self-employed, data also include an
estimate of wages, salaries, and supplemental payments for the
self-employed.
(2) Condensation per hour adjusted for changes in the Consumer Price Indec for
All Urban Consumers.
(3) Unit nonlabor payments include profits, capital consumption allowances,
interest, rental income of persons, and indirect taxes.
(4) Current dollar gross product divided by constant dollar gross' product.
(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) Quarterly manufacturing output measures are based on the indet of
industrial production prepared monthly by the Board of Governors of the
Federal Reserve adjusted by BLS to annual manufacturing output levels
(gross product originating) from the National Income and Product Accounts
prepared by the Bureau of Economic Analysis of the U.S. Department of
Commerce.
(7) Unit nonlabor cost includes capital consumption allowances,
rental income of persons, and indirect taxes.

interest,

(8) Total unit cost is the sun of labor and nonlabor costs.
(9) Unit profits include corporate profits with inventory valuation and capital
consumption adjustments.