Full text of Productivity and Costs : Third Quarter 1988 [Preliminary]

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News

Bureau of Labor Statistics

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

Historical, technical
information: (203) 523-9361
Current data : (202) 523-1221 or 1208
Media contact: (202) 523-1913
PRODUCTIVITY

USOL 38-547
For Release: 10:00 AM EST
Wednesday, November 2, 1988

AND COSTS

Third Quarter 1988
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons—for the third quarter of 1988. Based on information now available,
the seasonally-adjusted" annual rates of productivity growth in the third
quarter were:
1.0 percent in the business sector,
1.3 percent in the nonfarm business sector,
4.3 percent in manufacturing,
3.7 percent in durable goods manufacturing, and
5.1 percent in nondurable goods manufacturing.
Third-quarter measures are summarized in table A and appear in detail in
tables 1 through 5.
For business and nonfarm business, the third-quarter productivity
measures showed a return to growth after declining in the second quarter. In
manufacturing, productivity growth was more rapid than during the second
quarter. Both output and hours grew more slowly in the third quarter in
business and nonfarm business, but accelerated in manufacturing. Between the
third quarter of 1988 and the third quarter of 1987, business productivity
rose 0.4 percent,
Business

Productivity increased at a 1.0 percent annual rate during the third
quarter of 1988 in the business sector, as output rose 2.0 percent and hours
of all persons engaged in the. sector increased 1.0 percent (seasonally
adjusted annual rates).
During the second quarter of 1988, productivity
declined 3.4 percent, as output grew 2.4 percent while hours increased 6.0
percent (table 1). The third-quarter output increase was the smallest in the
past 8 quarters.




- 2Table A. Productivity and costs: Preliminary third-quarter 1983 measures
(Seasonally adjusted annual rates)

-

Productivity

Sector

Output

Hours

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

1.1
0.6
-0.1
-0.4
0.1

4.9
4.0
0.3
0.7
-0.2

0.9
0.7
-0.3
-0.4
-0.3

4.7
4.1
0.7
0.2
1.4

Percent change from preceding quarter

1.0
1.3
4.3
3.7
5.1

Business
Nonfarm business
Manufacturing
Durable
Nondurable

2.0
2.8
6.5
6.6
6.2

1.0
1.5
2.1
2.8
1.1

5.9
5.4
4.6
4.4
4.9

Percent change from same quarter a year ago

Business
Nonfarm business
Manufacturing
Durable
Nondurable

0.4
0.8
3.1
3.5
2.3

3.9
4.6
6.1
7.2
4.3

3.5
3.7
2.9
3.6
1.9

5.1
4.9
. 3.8
3.7
3.8

Hourly compensation increased at a 5.9 percent annual rate during the
third quarter of 1988, compared with a 4.8 percent rise during the second
quarter.
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 4.9
percent annual rate during the third quarter, compared with a 8.5 percent
growth rate in the second quarter.
Real hourly compensation, which takes into account changes in the
Consumer Price Index -for All Urban Consumers (CPI-U), increased at a 1.1
percent annual rate in the third quarter, compared with no change in the
second quarter of 1988.
The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments* increased 4.0 percent in the
third quarter, compared with a 5.8 percent gain during the second quarter.
Nonfarm business
Productivity increased 1.3 percent in the nonfarm business sector during
the third quarter of 1988, as output rose 2.3 percent and hours of all
persons—employees, proprietors, and unpaid family workers--increased 1.5
percent.
During the second quarter of 1980, nonfarm productivity fell 2.4
percent. In the third quarter, both output and hours grew more slowly than
in the previous quarter.




- 3As in the more comprehensive business sector, the increase in nonfarr.i
business productivity reflected a greater slowing in the growth of hours than
of output (table 2). Monfarn productivity has been stronger than business
sector productivity in the last 6 months because of the productivity declines
that occurred in fanning.
Hourly compensation rose 5.4 percent in the third quarter, but gained
only 9.6 percent when the change in the CPI-U was taken into account. Unit
labor costs increased 4.0 percent, compared with a 6.8 percent rise during
the second quarter of 1988.
The implicit price deflator for nonfarm business output rose 3.4 percent
in the third quarter, compared with a 4.7 percent increase one quarter
earl ier.
Manufacturing
Productivity increased at a 4.3 percent seasonally adjusted annual i
in manufacturing
anufacturing in the third quarter of 1988, as output rose 6.5 percent and
hourss of all persons increased 2.1 percent. In contrast to the more
compremore•corni
hensive business sectors (of which manufacturing is a part) where output
gains have been si owing, the increase in manufacturing output in the thi rd
quarter was the largest this year (table 3). During the second quarter of
1988, productivity rose 3.7 percent, as output rose 5.3 percent and hours
increased 2.0 percent.
Hourly compensation of manufacturing workers rose 4.6 percent during the
third quarter, but fell 0.1 percent when the increase in consumer prices was
taken into account. Real hourly compensation has declined in 6 of the past 7
quarters. Unit labor costs increased slightly in the third quarter (at a 0.3
percent annual rate), only the third increase in the last 7 quarters.
Both durable and nondurable goods industries experienced productivity
increases in the third quarter (tables 4 and 5). Output and hours grew more
rapidly in durable-goods manufacturing firms where the 3.7 percent productivity gain reflected a 6.6 percent gain in output and a 2.8 percent increase
in hours.
Revised data
Table B shows second-quarter productivity and cost measures which were
revised to reflect changes in underlying data since the last publication of
Productivity and Costs. Output measures for business and nonfarm business
were lower by about 1 percent because of changes in the national income and
product accounts.




- 4 -

Table B. Previous and revised productivity and related measures,
second-quarter 1988
Quarterly percent change at seasonally adjusted annual rates

;

• •' - , ' :'...

Sector

Productivity

Business:
Previous
Revised
Nonfarm business:
Previous
Revised
Manufacturing
Previous
Revised

. ' ' '

; '..-

,'

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

4.8

7.5
8.5

Output

Hours

-2.5
-3.4

3.4
2.4

6.0
6.0

4.8

0.0
0.0

-1.4
-2.4

5.2
4.0

6.6
6.6

4.2
4.2

-0.6
-0.5

5.7
6.8

3.6
3.7

5.7
5.8

2.0
2.0

3.0
3.0

-1.7
-1.7

-6.6
-0.7

5.2
3.0

4.7
4.7

4.2
4.2

-0.6
-0.6

3.7
5.9

Nonfinancial corporations:
Previous
0.4
Revised
-1.6
Next release date

The next issue of Productivity and Costs Is scheduled for release at
10:00 AM EST, Monday, December 5, 1988, and will contain preliminary
third-quarter measures for nonfinancial corporations and revised measures for
business, nonfarm business, and manufacturing.




- 5-

TECHNICAL 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 accounted for 80 percent of gross national product in
1987. The nonfarm business sector, which also excludes farming, accounted for
about 78 percent of gross national product in 1987.
Total manufacturing measures are computed by summing series prepared for
the durable and nondurables 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 accounted for
product in 1987.

about 22 percent of gross national

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 nonprofit institutions, output of paid
employees of private households, rental vslue of owner-occupied dwellings, the
output of corporations engaged in banking, finance, stock and commodity trading,
and credit and insurance agencies, and the statistical discrepancy in computing
the national income accounts. Nonfinancial corporate output accounted for about
59 percent of gross national product in 1987.
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 show 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; managerial skill; and the characteristics and effort
of the work force.




-b-

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

Output per
hour
of all persons

Output

Hours
of all
persons

Corapensation per
hour(l)

Real
compensation per
hour<2)

Unit
labor
cost

Unit nonlabor payments(3)

Implicit
price
deflator(A)

Indexes 1977*100

I
II
III

1987

IV

109.9
110.6
111.7
111.8

130.5
132.2
134.3
136.2

118.8
119.5
120.3
121.8

187.3
189.0
191.1
194.0

101.5
101.2
101.4
102.0

170.5
170.8
171.1
173.5

165.6
168.7
171.5
168.9

168.7
170.1
171.2
171.9

ANNUAL

111.0

133.3

120.1

190.4

101.5

171. 5

168.7

170.5

112.8
rill. 8
112.1

138.0
r!38.8
139.5

122.3
r!24.1
124.5

195.8
r!98.1
200.9

102.1
102.1
102.3

170.0
r!70.4
171.4

172.3
r!74.7
176. 5

I
II
III

1988

173.5
r!77.1
•179.2

Percent change from previous quarter at annual rate(5)
I
II
III
IV

0.3
2.7
3.9
0.6

3.7
5*3
6.6
5.7

3.4
2.5
2.6
5.1

2.5
3.6
4.6
6.2

-2.8
-1.2
0.8
2.4

2.2
0.8
0.7
5.6

4.6
7.9
6.7
-5.8

3.0
3.2
2.8
1.4

ANNUAL

0.8

3.6

2.8

4.0

0.3

3.1

2.3

2.8

I
II
III

3.5
r-3.4
1.0

5.5
r2.4
2.0

1.9
6.0
1.0

3.7
4.8
5.9

0.3
0.0
1.1

0.2
r8.5
4.9

2.5
rl.O
2.3

1.0
r5.8
4.0

1987

1988

Percent change from corresponding quarter of previous year
I
II
III
IV

-0.6
0.2
1.5
1.9

1.6
3.1
4.5
5.3

2.2
2.9
3.0
3.4

3.8
3.8
3.9
4.2

1.5
0.0
-0.3
-0.2

4.4
3.6
2.3
2.3

0.7
2.1
2.9
3.2

3.1
3.1
2.5
2.6

ANNUAL

0.8

3.6

2.8

4.0

0.3

3.1

2.3

2.8

I
II
III

2.7
rl.l
0.4

5.8
r5.0
3.9

3.0
3.9
3.5'

4.5
4.8
5.1

0.5
0.9
0.9

1.8
r3.7
4.7

2.7
rl.O
0.0

2.1
r2.7
3.0

1987

1988

See footnotes following table 6,
r»revised




November 2, 1988
Source: Bureau of Labor Statistics

-7-

Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted
Year and
quarter

Output per
hour
of all persons

Hours
of all
persons

Output

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Unit noirlabor payraents(3)

Implicit
price
deflator(4)

Indexes 1977-100

1987

1
IT.
Ill
IV

107.8
108.6
109.6
109.9

130.1
131.9
134.1
136.0

120.7
121.5
122.3
123.8

186.4
187.9
190.0
192.9

101.0
100.6
100.8
101.4

172.9
173.0
173.3
175.6

167.2
169.8
173.0
170.9

170.9
171.9
173.2
174.0

ANNUAL

109.0

133.0

122.1

189.4

101.0

173.8

170.2

172.5

I
II
III

110.8
rllO.i
110.5

137.9
r!39.2
140.2

124.4
T126.4
126.9

194.6
196.6
199.3

101*5
101.3
101.5

175.7
ri78.6
180.4

171.6
rl71.8
172.7

174*2
r!76.2
177.7

1988

• . -. •

. -•' '. .•• •

•;••;

•

.;.-...

- .

.

.-

•

Percent change from previous quarter at annual rate(5)

1987

I
II
III
IV

0.0
3.2
3.7
0.9

4.0
5.7
6.8
5.9

4.0
2.5
2.9
4.9

2.1
3.4
4.5
6.4

-3.2
-1.4
0.6
2.6

2.1
0.2
0.7
5.4

5.7
6.5
7.7
-4.8

3.3
2.3
3.1
1.8

ANNUAL

0.8

3.8

3.0

3.8

0.2

3.1

2.3

2.8

I
II
III

3.4
r-2.4
1.3

5.6
r4.0
2.8

2.1
6.6
1.5

3.5
4.2
5.4

0,1
r-0.5
0.6

0.1
r6.8
4.0

1.6
rO.7
2.1

r4.7

1988

0.6
3.4

Percent change from corresponding quarter of previous year
I
II
III
IV

-0.8
0.2
1.5
1.9

1.6
3.2
4.7
5.6

2,4
3.0
3.2
3.6

3.7
3.7
3.7
4.1

1.4
-0.1
-0.4
-0.4

4.5
3.5
2.2
2.1

0.6
1.9
2.9
3.6

3.1
3.0
2.5
2.6

ANNUAL

0.8

3.8

3.0

3.8

0.2

3.1

2.3

2.8

I
II
III

?.8
rl.4
0.8

6.0
r5.6
4.6

3.1
4.1
3.7

4.4
4.6
4.9

0.5
0.7
0.7

1.6
r3.2
4.1

2.6
rl.2
-0.2

r2.5

1987

1988

See footnotes following table 6.
r= revised



1.9
2.6

November 2,. 1988
Source: Bureau of Labor Statistics




-8Table 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

Compensation per
hour(l)

Real
com pens ation per
hour(2)

Unit
labor
cost

Indexes 1977-100
1987

1988

I
II
III
IV

130.0
131.7
132.8
133.2

127.2
128.7
131.1
133.5

97.8
97.7
98.8
100.2

185.9
186.3
187.2
188.2

100.8
99.7
99.3
99.0

143.1
14U4
141.0
141.3

ANNUAL

132.0

130.1

98.6

186.9

99.7

141.7

I
II
III

134.3
135.5
136*9

135.0
136.9
139.1

100.6
101.1
101.6

190.7
192.1
194.3

99.4
99.0
99.0

142.1
r!41.8
141.9

-3.8
-4.0
-1.7
-1.5

-2*1
-4.6
-1.1
-1.2

Percent change from previous quarter at annual rate(5)
1987

1988

7.5

4.4
6.1

1.4
0.7
2.1
2.1

4.3

0.9

2.1

-1.5

3.2

4.6

5.4
3.0
4.6

2.2

r5.8

1.3
2.0
2.1

2.0

r3.7

-1.7
-0.1

r-0.7

4.1
4.9

I
II
III
IV

3.6
5.5
3.2
1.3

ANNUAL

3.4

I
II
III

4.3

6.5

- 7.8

0.5

-0.6

0.8

0.3

Percent change from corresponding quarter of previous year
1987

1988

I
II
III
IV

2.7
3/6
3.7
3.4

2.4
3.7
5.1
6.0

-0.3
0.1
1.4
2.6

2.7
2.3
2.0
1.6

ANNUAL

3.4

4.3

0.9

2.1

I
11
EH

3.3
2.8
3,1

6.2
6.4
6.1

2.8
3.4
2.9

2.6
3.2
3.8

See footnotes following table 6,
r=revised

0.4

0.0

-1.4
-2.1
-2.7

-1.2
-1.7
-1.8

-1*5
-1 . 3
-0.7
-0.3

-1.2
-0.7
0.3
0.7

November 2, 1988
Source: Bureau of Labor Statistics




-9Table 4* Durable 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

Compensatlon per
hour(l )

Real
compensa*
tion per
hour(2)

Unit
labor
cost

Indexes 1977=100

1987

1988

IV

136.6
138.1
139.1
140.0

133.3
134.2
136.5
139.9

97.6
97.2
98.2
99.9

184.9
184.4
185.3
186.2

100.2
98.8
98.3
97.9

135.3
133.5
133.2
133.0

ANNUAL

138.5

136.0

98.2

185.2

98.8

133.7

I
11
III

141.3
142.7
143.9

141.3
144.0
146.3

100.0
100.9
101.6

189.5
r!90.1
192.2

98.8
98.0
97.9

134.1
133.3
133.5

1
11
III

Percent change from previous quarter at annual rate(5)

1987

1988

I
II
III
IV

4,7
4.4
2.9
2.6

4.5
2.8
7.0
10.2

-0.2
-1.5
4.0
7.3

1.3
-1.0
2.0
1.9

-3.9
-5.6
-1.7
.-1.7

-3.2
-5.1
-0.9
-0.7

ANNUAL

3.8

4.0

0.2

1.8

-1.8

-1.9

I
11
III

3*8
r3.8
3,7

4.3
7.7
6.6

0.4
r3.8
2.8

7.1
rl.4
4.4

3.6
r-3.2
-0.4

3.2
-2.3
0.7

Percent change from corresponding quarter of previous year

1987

1988

I
II
III
IV

3.3
4.1
3.8
3.7

2.1
3.3
4.5
6.1

-1.2
-0.8
0.6
2.3

2.6
2.0
1.7
1.1

0.3
-1.7
-2.4
-3.2

-0.8
-2.0
-2.1
-2.5

ANNUAL

3.8

4.0

0.2

1.8

-1.8

-1.9

I
II
III

3.4
3.3
3.5

6.0
7.3
7.2

2.5
3.8
3.6

2.5
3.1
3.7

-1.4
-0.8
-0.4

-0.9
-0.2
0.2

See footnotes following table 6.
r=* revised

November 2, 1988
Source: Bureau of Labor Statistics




-10Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted

Year and
quarter

Output per
hour
of all persons

Output
(6)

Compensation per
hour( 1 )

Real
compensation per
hour(2)

98.2
98.4
99.7
100.7

188.0
189.7
190.8
191.9

101.9
101,6
101.2
100.9

156.4
155.0
154.5
155.8

Hours
of all
persons

Unit
labor
cost

Indexes 1977=100

1987

1988

I
11
III
IV

120.1
122.4
123.5
123.2

ANNUAL

122.3

121.4

99.3

190.1

101.4

155.4

I
II
III

123.9
T124.8
126.4

125.6
r!26.4
128.3

101.4
101.3
101.5

193.2
195.7
198.1

100.8
rl-00.9
100.9

156.0
r!56.8
156.7

118.0
: 120.5
123.1
124.0

1

Percent change from previous quarter at annual rate(5)

1987

1988

1.5
0.8
5.1
4.2

1.6
3.8
2.4
2.2

-3,6
-1.0
-1.4
-1.4

-0.2
-3.6
-1.3

-1.1

3.4
8.5
9.0
3.1

ANNUAL

2.8

4.9

2.0

2.8

-0.8

0.0

I
II
III

2.3

5.1

2.7

0.6

r2.7

r-0.5

5.1

6.2

l.l

2.9
5.2
4.9

-0.5

r3.2

0.4
0.1

r2.0
-0.2

0.9

1.4
0.2

I
II
III
IV

1.9
7.6
3.8

3.4

Percent change from corresponding quarter of previous year

1987

1988

I
II
III
IV

1.8
2.9
3.6
3.0

2.9
4.4
6.2
6.0

,1,1

1.5
2.5
2.9

3.2
3.1
2.6
2.5

-0.7
-1.5
-1.9

-1.0
-0.5

ANNUAL

2.8

4.9

2.0

2.8

-0.8

0.0

I
II
III

3.1
r2.0

6.4
4.9
4.3

3.2
2.9
1.9

2.8
3.2
3.8

-1.1
-0,7
-0.3

-0.3
rl.l

2.3

See footnotes following table 6.
r=revised

1.4

November 2, 1988
Source: Bureau of Labor Statistics




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

Output
per allemployee
hour

Output

Employee Hourly
Real
hours compensa- hourly
tion
compen(1)
sation(2)

Unit
labor
cost

Unit
nonlabor
cost(7)

Total
unit
cost
(8)

Unit
profits
(9)

Implicit
price
deflator
(4)

Indexes 1977=100

1987

1988

I
II
III
IV

110.1
110.9
112.2
112.2

131.3
133.3
136.1
137.7

119.3
120.2
121.3
122.8

182.9
184.3
186.1
188.5

99.1
98.7
98.7
99.1

166.2
166.1
165.9
168.1

180.8
182.6
183.0
183.6

169.9
170.3
170.2
172.0

128.5
129.8
136.4
128.3

164.9
165.4
166.1
166.7

ANNUAL

111.3

134.6

120.9

185.5

98.9

166.6

182.5

170.6

130.8

165.8

I
II

113.3
rl!2.9

140.1
rlAi.2

123.6
r!25.0

189.9
r!91.9

99.0
98.9

167.5
r!70.0

183.4
r!85.1

171.5
r!73.8

132.5
r!32.6

166.9
r!68.8

Percent change from previous quarter at annual rate(5)

1987

IV

-1.0
3.1
4.7
-0.1

2.9
6.1
8.8
4.7

4.0
2.9
4.0
4.8

1.6
2.9
4.1
5.2

-3.6
-1.8
0.3
1.5

2.6
-0.2
-0.6
5.3

2.5
4.1
0.8
1.3

2.6
1.0
-0.2
4.2

-3.5
3.9
21.9
-21.5

2.0
1.2
1.7
1.5

ANNUAL

1.5

4.3

2.7

3.4

-0.3

1.8

2.3

1.9

-1.2

1.6

I
II

4.3
r-1.6

7.2
r3.0

2.8
4.7

3.0
4.2

-0.4
-0.6

-1.2
r5.9

-0.3
r3.7

-1.0
r5.3

13.8
rO.3

0.3
r4.8

I
II

nr

1988

Percent change from corresponding quarter of previous year

1987

1988

I
II
III
IV

0.5
1.5
2.3
1.6

2.0
3.9
5.6
5,6

1.5
2.4
3.2
3.9

3.3
3.2
3.3
3.4

1.0
-0.6
-0.9
-1.0

2.8
1.7
0.9
1.8

2.3
3.2
1.5
2.2

2.6
2.1
1.1
1.9

-3.8
-2.2
2.0
•1.1

2.0
1.7
1.2
1.6

ANNUAL

1.5

4.3

2.7

3.4

«0.3

1.8

2.3

1.9

-1.2

1.6

I
II

3.0
rl.8

6.7
r5.9

3.6
4.1

3.8
4.1

-0.1
0.2

0.8
r2.3

1.5
rl.4

1.0
r2.1

3.1
r2.2

1.2
r2.1

See footnotes following table 6.
r-revised

November 2, 1988
Source: Bureau of Labor Statistics

- 12 *

SOURCE: Output data from Bureau of Economic Analysis, U.S. Department of
Commerce, 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. 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. 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 initial
value by between -2.0 and +2.0 index points. This interval is based on the
performance of this measure between the first quarter of 1976 and the second
quarter of 1987.
Footnotes, tables 1-6
(1) Wages and salaries of the employees plus employers1 contributions for
social insurance and private benefit plans. Except for nonfinancia'
corporations, where there are no self-employed, data also include an
estimate of wages, salaries, and supplemental payments for the selfemployed.
(2) Compensation per hour adjusted for changes in the Consumer Price Index for
Al1 Urban Consumers.
(3) Unit nonlabor payments include profits, capital consumption
interest, rental income of persons, and indirect taxes.

allowances,

(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 index 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, interest,
rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition.
(8)"Total unit cost is the sum of labor and nonlabor costs.
(9) Unit profits include corporate
capital consumption adjustments.




profits with

inventory valuation and