Full text of Productivity and Costs : Third Quarter 1989 [Preliminary]

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News

Bureau of Labor Statistics

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

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

USDL 89-523

Wire embargo until 10:00 AM EST
Thursday, November 2, 1989

PRODUCTIVITY AND COSTS

Third Quarter 1989
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported oreliminary productivity data—as measured by output per hour of all
persons—tor the third quarter of 1989. The data show that productivity advanced
modestly in business and manufacturing, while a larger productivity increase occurred,
in the nonfarm sector, partly reflecting smaller gains in hours than in the more
comprehensive business sector. The preliminary seasonally-adjusted annual rates of
productivity change in the third quarter were:
1.2 percent in the business sector,
2.1 percent in the nonfarm business sector,
1.4 percent in manufacturing,
1.7 percent in durable goods manufacturing, and
1.2 percent in 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 1.2 percent annual rate during the third
quarter of 193^ in the business sector, as output rose 3.0 percent and hours of
all persons engaged in the sector increased 1.7 percent (seasonally adjusted
annual rates). The hours increase partly reflects a strong rebound in farming
during the July-September period. During the second quarter of 1989,
productivity had increased 1,6 percent (table 1). In the third quarter of
1989, business employment rose 1.6 percent and average weekly hours increased
0.1 percent, the first lengthening in the average workweek this year.
Hourly compensation increased at a 4.8 percent annual rate during the
third quarter of 1989, significantly slower than the 6.8 percent gain during
the previous q-iarter. This measure includes wages and salaries, supplements,
employer contributions to employee-benefit plans, and taxes. Unit labor costs,
which reflect cuanges in hourly compensation and productivity, increased at a
3.5 percent annual rate during the third quarter, compared with a 5.1 percent
increase during the second quarter.




2 )

Table A. Productivity and costs: Third-quarter 1989 measures
(Seasonally adjusted annual rates)
Real

Sector

Hourly hourly Unit
Produccompen- compen- labor
tivity Output Hours sation sation
costs
Percent change from preceding quarter

Business
Nonfarm business
Manufacturing
Durable
Nondurable

1 .2
2.1
1 .4
1.7
1 .2

3.0
3.1

1.7
1.0

4.8
5.3

2.3
2.9

3.5
3.2

1 .3
0.1

-0.1
-1.6

6.0
6.6

3.5
4.1

4.5
4.7

3 .3

2.1

5 .5

3.0

4.2

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

1.0
0.9
2.4
2.7
2.1

3.4
3.3
3.3
2.7
4.2

2.3
2.3
0.8
0.0
2.1

5.4
5.4
4.5
4.6
4.5

0.7
0.7
-0.2
-0.1
-0.2

4.3
4.4
.2.0
1.8
2.3

Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), increased at a 2.3 percent annual
rate during the third quarter. This was the largest increase in this measure
since the 3.4-percent increase during the fourth quarter of 1987. During the
second quarter of 1989, it had increased at a 0.4 percent annual rate.
The implicit price deflator for business output, which reflects changes in
unit labor costs and unit nonlabor payments, increased 2.1 percent in the third
quarter, compared with a 4.6 percent rise in the second quarter.
Nonfarm business
Productivity increased 2.1 percent in the nonfarm business sector during
the third quarter of 1989, as output rose 3.1 percent and hours of all persons-employees, proprietors, and unpaid family workers—increased 1.0 percent.
During t>e second quarter of 1989, productivity had increased 1,1 percent in
this sector. Quarterly output gains have accelerated during 1989, while hours
increases have slowed in this sector (table 2). The third-quarter increase in
hours was the smallest gain in any quarter since the second quarter of 1986
(when ho-irs fell 0.6 percent).




( 3)

Hourly compensation increased 5.3 percent in the third quarter, or 2.9
percent when the increase in the CPI-U was taken into account. During the
second quarter, the comparable changes were 5.6 percent and -0.7 percent,
respectively. The third-quarter increase in real hourly compensation was the
largest gain since 1987 (when it rose 3.4 percent in the fourth quarter).
Unit labor costs increased 3.2 percent, compared with a 4.5 percent rise during
the second quarter of 1989.
The implicit price deflator for nonfarm business output rose 2.6 percent
in the third quarter, compared with a 4.4 percent increase one quarter earlier.
Manufacturing
Productivity increased at a 1.4 percent seasonally adjusted annual rate in
manufacturing in the third quarter of 1989, compared with a 3.7 percent gain
during the second quarter. The third-quarter gain was the smallest since 1987
(when it grew 1.3 percent in the fourth quarter). In the third quarter, output
increased 1.3 percent (the smallest gain since 1986) and hours of all persons
decreased 0.1 percent. The growth in both output and hours was much faster in
nondurables than in durables (tables 4, 5).
Hourly compensation of all manufacturing workers increased 6.0 percent
during the tuird quarter, a large increase over the 2.7 percent rise during the
second quarter and the largest gain since 1985, Real hourly compensation rose
3.5 percent in the third quarter when the increase in consumer prices was taken
into account, the largest gain since ;a 4.3 percent increase occurred in the second
quarter of 19tib. Unit labor costs rose at a rapid 4.5 percent annual rate in the
third quarter, compared with a 1.0 percent decline during the second quarter of
1989, and was the largest quarterly increase since a 9.7 percent gain was recorded
in the first quarter of 1982.
•
Revised measures
Previous, and revised productivity anoVcost/-^
r
are compaheH iri table B for* business! hbnfarm business, manufacturing, and *;•
nonfinancidl corporations. The revised movements are based on more complete/
information than was available on September 6 when the previous values were
announced. In addition, tables 1-6 show revisions
in hours which reflect the
incorporation of the; 1988 Hours at Work SurveY* ;-Also affected are Aeries which
-depend 6n th* hours irteasure--productivityy hourly compensation, real hourly : • compensation, and, to a lesser extent, unit labor costs and unit nohlabor payments,




Table B. Previous and revised productivity and related measures,
second-quarter 1989
Quarterly percent change at seasonally adjusted annual rate

Real
hourly Unit
compen- labor
sation costs

Productivity

Output

Hours

, Hourly
compen^
satiori

1*3
1.6

1.9
2.3

0.6
0,6

6.8
6.8

- 0.4
0.4

5.5
5.1

Nonfann business:
Previous
0.7
Revised
1,1

2,4
2*8

1,7
1.7

5.6

5.6

; -0.7

>0.7

4.9
4.5

Manufacturing:
Previous
Revised

2.9
3.5

0.0
-0.2

2.4
2.7

-3.7
-3.5

;

-1.0

Nonfinancial corporations:
Previous
-0.2
1.7
Revised
0.1
2.0

1.9
1.8

5.3
5.4

-1.0
-0.9

;

5.6
5.3

Sector
Business:
Previous ,
Revised

2.9
3,7

;

-0.4

Next release date
The next release of productivity and cost.measures isjicheduledjfor 10:6^/;
AM EST, Wednesday, December 6, 1989. third-quarter measures for, honfinancial
corporations will be released at that time.




( 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 81 percent of gross national product in
1988. The nonfarm business sector, which also excludes farming, accounted for
about 79 percent of gross national product in 1988.
Total manufacturing measures are computed by summing series prepared for
the durable and nondurable 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, leatner and leather products, printing and publishing, chemicals and
chemical products, petroleum products, rubber and plastic products, food, and
tobacco products. Manufacturing accounted for about 22 percent of gross
national product in 1988.
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 value 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 60 percent of gross national product in 1988.
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 anu 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.




lable 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

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Unit nonlabor payments (3)

Implicit
price
deflator(4)

168.9
r!73.7

171.9
174.1
175.8
177.9

Indexes 1977=100
1988

1989

I
II
III

rll3.2
rll2.6

r204.5

102.3
r!02.5
T102.8
T103.0

rl78.0
180.2

r!22.1
r!23.8
r!24.0
r!25.0

r!96.4
r!99.1
r201.9

IV

rll3.4
rl!3.5

138.2
139.3
140.7
141.9

ANNUAL

rllS.O

140.0

r!23.9

r200.2

rl02.5

r!77.1

rl70.9

174.9

I
II
III

rl!3.8
T114.2
114.6

143.6

rl44.4
145.4

rl26.2
r!26.4
126.9

r206.9
r210.4
212.8

r!02.8
r!02.9

181.9
r!84.1

174.7
r!76.3

103.5

185.7

176.1

179.4
181.4
182.3

173.5
176.9

168.8
rl71.8

Percent change from previous quarter at annual rate(5)
1988

1989

I
II
III
IV

r2.5
r-2.1
3.1
0.2

3.3
4.0
3.4

rl.9
r5.5
0.9
3.2

r2.6
r5.7
5.8

ANNUAL

rl.7

4.9

I
II
III

rl.l
rl.6
1.2

4.4

0.1
r8.0
2.6
5.0

r-0.2

5.2

r-1.0
rl.l
1.0
0.7

7.1
4.6

1.5
5.1
4.1
4.8

r3.2

r4.8

rO.6

r3.0

2.7

2.9

4.8

r3.7
0.6
1.7

4.8
6.8
4.8

-0.6

r2.3

3.7
r5.1

2.4
r3.5
-0.4

3.3
4.6
2.1

3.0

0.4
2.3

3.5

4.2

Percent change from corresponding quarter of previous year
1988

1989

I
II
III
IV

r2.9
rl.7
rl.5
rO.9

5.9
5.4
4.7
3.8

r2.9
r3.6
r3.1
r2.9

r4.3
r5.1
r5.3
r4.8

rO.3
rl.l
rl.l
rO.4

1.3
3.3
3.7
3.9

3.9
1.4
1.7
3.9

2.2
2.6
3.0
3.9

ANNUAL

rl.7

4.9

r3.2

r4.8

rO.6

r3.0

2.7

2.9

I
II
III

rO.5
rl.5
1.0

3.9

3.3
2.1
2.3

5.4
r5.6
5.4

0.6
0.4

4.8

r3.6

r4.1

0.7

4.3

3.4
r4.4
2.5

4.3
4.2
3.7

See footnotes following table 6.
r=revised



3.4

November 2, 1989
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

Output

Hours
of all
persons

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Unit nonlabor payments(3)

Implicit
price
deflator(4)

173.8
175.6
177.0
179.6

Indexes 1977=100
1988

I
II
III
IV
ANNUAL

1989

I
II
III

175.7
178.7
179.6

rlll.O
rllO.5
rill. 5
rl!2.0

138.0
139.5
141.1
142.8

124.3
r!26.2
r!26.6
r!27.5

r!95.0
r!97.5
r200.2
r203.0

rl01.5
rl01.7
rl01.9
r!02.3

181.3

r!70.3
169.8
r!72.1
r!76.3

rlll.l

140.3

r!26.3

r!98.7

rlOl.8

178.8

172.2

176.5

rill. 6
rill. 9
112.5

143.6
r!44.6
145.7

r!28.6
r!29.2

r205.5
r208.3
211.0

r!02.1
rlOl.9

184.1
r!86.1
187.6

174.6
r!76.5
177.2

180.8
182.8
184.0

129.5

102.7

Percent change from previous quarter at annual rate(5)
1988

I
II
III

1.2
2.8

r2.5
r5.4
r5.4
5.9

r-1.1
rO.8
rO.7
1.4

-0.3
7.1
2.0
r3.8

3.6
-1.0
5.4
10.1

1.0
4.3
3.2
5.9

5.4

r3.4

r4.7

rO.5

2.7

r2.7

2.7

2.4

r3.7
1.7
1.0

r4.9

r-0.5

6.2

5.6
5.3

-0.7
2.9

r4.5

-3.7
r4.2
1.6

r4.4

IV

r2.8
r-1.6
r3.3
1.9

4.4
4.6
4.8

ANNUAL

r2.0

I
II
III

-1.3
rl.l
2.1

r2.8
3.1

1989

4.8

r2.0
r6.1

3.2

2.8
2.6

Percent change from corresponding quarter of previous year
1988

1989

I
II
III
IV

r3.0
rl.8
rl.7
rl.6

6.1
5.7
5.2
4.7

r3.0
r3.8
r3.4
r3.0

r4.2
r4.9
r5.1
r4.8

rO.3
rl.O
rO.9
rO.4

1.2
3.1
3.3
3.1

rl.l
r4.5

2.0
2.5
2.5
3.6

ANNUAL

r2.0

5.4

r3.4

r4.7

rO.5

2.7

r2.7

2.7

I
II
III

0.6
rl.3
0.9

4.1

r3.5
2.4
2.3

5.4
5.5
5.4

0.6
0.2
0.7

4.8

r3.7

r4.1

2.6
r3.9
2.9

4.0
4.1
3.9

See footnotes following table 6,
r=revised



3.3

4.4

3.7
1.3

November 2, 1989
Source: Bureau of Labor Statistics




( 8)

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

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Indexes 1977=100
1988

1989

I
II
III
IV

r!35.5
r!36.3
r!37.8
r!38.6

135.0
136.9
139.3
141.1

r99.7
rlOO.5
rlOl.l
rlOl.8

r!94.3
r!95.3
r!97.4
r200.2

rl01.2
rlOO.6
rlOO.5
rlOO.8

r!43.4
143.3
143.2
r!44.4

ANNUAL

r!36.5

138.1

rl01.2

r!96.0

rlOO.4

143.6

I
II
III

r!39.4
r!40.7
141.2

142.2
r!43.4
143.9

r!02.0
rl01.9
101.9

r201.9
r203.2
206.2

rlOO.3
r99.4
100.3

144.8
r!44.4
146.0

Percent change from previous quarter at annual rate(5)

1988

1989

I
II
III
IV

r2.2
r2.5
r4.7
r2.2

4.6
5.8
7.1
5.1

r2.3
r3.2
r2.4
r2.9

r5.6
r2.2
r4.3
r5.7

rl.9
r-2.3
r-0.4
rl.2

3.3
-0.3
-0.3
3.5

ANNUAL

r2.7

6.1

r3.3

r3.6

r-0.5

0.9

I
II
III

r2.4
r3.7
1.4

3.1
r3.5
1.3

rO.7
r-0.2
-0.1

r3.5
r2.7
6.0

r-1.9
r-3.5
3.5

1.0
r-1.0
4.5

Percent change from corresponding quarter of previous year
1988

1989

I
II
III
IV

r3.0
r2.3
r2.7
r2.9

6.2
6.4
6.2
5.6

r3.1
r4.0
r3.5
r2.7

r2.9
r3.4
r3.7
r4.4

r-1.0
r-0.5
r-0.4
rO.l

-0.1
1.1
1.0
1.5

ANNUAL

r2.7

6.1

r3.3

r3.6

r-0.5

0.9

I
II
III

r2.9
r3.2
2.4

5.3
r4.7
3.3

r2.3
1.4
0.8

r3.9
r4.0
4.5

r-0.8
-1.1
-0.2

1.0
rO.8
2.0

See footnotes following table 6*
r=revised

November 2, 1989
Source: Bureau of Labor Statistics

(9

Table 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

Compensation per
hour(l)

Real
compensation per
hour(2)

Urrit
labor
cost

Indexes 1977=100
1988

1989

I
II
III
IV

r!42.5
rl43.3
r!44.4
r!44.9

141.3
144.0
146.4
148.3

r99.2
rlOO.5
rlOl.4
P102.3

P192.6
P192.4
P193.9
P196.9

rlOO.3
P98.7
P99.2

135.2
134.3
P134.3
135.9

ANNUAL

r!42.8

145.0

rlOl.5

P192.6

P98.7

134.9

I
II
III

r!45.6
r!47.7

149.1

P150.3

P102.4
rl01.7

P98.8
P97.7

P136.5
P135.1

148.4

150.3

101.3

P198.8
P199.6
202.8

98.7

136.7

P99.1

Percent change from previous quarter at annual rate(5)
1988

1989

I
II
III
IV

rl.9
r2.3
r3.2
rl.5

4.3
7.7
6.8
5,3

P2.3
r5.3
r3.4
r3.8

P6.0
r-0.4
P3.3
r6.3

r2.3
p-4.8
Pl.8

r4.0
-2.6
0.1
4.8

ANNUAL

r2.3

6.6

r4.2

r2.8

r-1.3

P0.4

I
II
III

rl.9
r5.9

2.2
r3.2
0.1

rO.3
r-2.5
-1.6

P3.8
Pi. 7
6.6

p-1.5
r-4.4
4.1

1.8
r-4.0
4.7

r-0.5
0.3

1.7

r-1.3

Percent change from corresponding quarter of previous yeap
1988

1989

I
II
III
IV

r2.7
r2.1
r2.3
r2.2

6.0
7.3
7.2
6.0

r3.2
r5.0
P4.8
r3.7

r2.3
r2.4
P2.6
P3.8

r-1.6
r-1.4
r-1.4
r-0.5

rO.3
rl.5

ANNUAL

r2.3

6.6

r4.2

P2.8

r-1.3

rO.4

I
II
III

r2.2

5.5
r4.4
2.7

r3.2
1.2
0.0

P3.2
3.8
4.6

r-1.5
-1.4
-0.1

1.0
rO.6

P3.1
2.7

See footnotes following table 6.
r=revised



1.8

November 2, 1989
Source: Bureau of Labor Statistics

( 10 )

Table 5. Nondurable 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
compensation per
hour(2)

Unit
labor
cost

Indexes 1977=100
1988

1989

I
11
III
IV

r!25.1
rl25.9
r!28.0
rl29.0

125.6
126.4
128.8
130.3

rlOO.4
rlOO.4
rlOO.6
rlOl.O

r!97.5
r200.5
r203.4
r205.7

rl02.9
r!03.3
r!03.5
r!03.6

157.8
159.3
158.9
159.4

ANNUAL

rl27.0

127.8

rlOO.6

r201.8

r!03.4

158.9

I
II
III

rl30.0
rl30.3
130.7

131.8
r!33.1
134.2

rl01.3
r!02.2
102.7

r207.2
r209.7
212.5

r!03.0
r!02.6
103.4

159.3
r!60.9
162.6

Percent change from previous quarter at annual rate(5)

1988

1989

I
II
III
IV

r2.7
r2.5
r6.9
3.2

5.1
2.7
7.7
4.8

r2.3
pO.2
rO.8
rl.6

r4.8
r6.2
r5.8
4.6

rl.2
rl.6
rl.O
rO.l

2.1
3.7
-1.0
1.4

ANNUAL

r3.1

5.2

r2.1

r4.8

rO.7

1.7

I
II
III

r3.3
rO.7
1.2

4.7
r4.0
3.3

1.4
3.3
2.1

2.9
4.9
5.5

-2.4
-1.4
3.0

-0.4
r4.2
4.2

Percent change from corresponding quarter of previous year

1988

1989

I
II
III
IV

r3.4
r2.3
r2.9
r3.8

6.4
4.9
4.6
5.0

r2.9
r2.6
rl.6
rl.2

r4.0
r4.7
r5.2
r5.4

rO.O
rO.8
rl.O
rl.O

0.6
2.4
2.2
1.5

ANNUAL

r3.1

5.2

r2.1

r4.8

rO.7

1.7

I
II
III

r3.9
r3.5
2.1

5.0
r5.3
4.2

rl.O
rl.8
2.1

r4.9
4.6
4.5

rO.l
-0.6
-0.2

0.9
rl.O
2.3

See footnotes following table 6.
r=revised



November 2, 1989
Source: Bureau of Labor Statistics

(11).
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor cost, unit p r o f i t s ,
and prices, seasonally adjusted
Year
Output
and
per allquarter employee
hour

Output

Employee Hourly
Real
hours compensa- hourly
tion
compen(1)
sat1on(2)

Unit
labor
cost

Unit
nonlabor
cost(7)

Total
unit
cost
(8)

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

Indexes 1977=100
1988

1989

I
II
III
IV

rll4.6
rl!4.7
rllB.l
r!14.9

141.2
142.8
144.3
145.4

r!23.2
r!24.5
r!25.4
r!26.5

r!90.9
r!93.1
r!95.5
r!97.8

r99.4
r99.5
r99.5
r99.6

166.6
168.4
169.9
172.1

187.8
188.9
191.0
193.3

171.9
173.6
175.2
177.5

127.0
129.1
127.5
131.6

166.5
168.2
169.5
172.0

ANNUAL

r!14.7

143.5

r!25.1

r!94.1

r99.4

169.3

190.3

174.6

128.8

169.1

I
II

rll4.5
rll4.5

145.8
r!46.5

r!27.4
r!28.0

r200.2
r202.8

r99.5
r99.3

174.9
r!77.1

196.9
r200.1

180.4
r!82.9

119.6
rl!6.6

173.1
175.0

Percent change from previous quarter at annual rate(5)

1988

1989

I
II
III
IV

r3.9
rO.4
rl.3
-0.4

6.8
4.6
4.3
3.2

r2.7
r4.2
r2.9
3.6

r2.9
r4.9
r4.9
4.8

r-0.7
rO.3
rO.2
0.4

-1.0
4.5
3.6
5.3

1.1
2.5
4.6
4.9

-0.4
3.9
3.9
5.2

17.6
6.8
-4.7
13.3

1.1
4.2
3.1
5.9

ANNUAL

rZ.3

6.0

r3.6

r4.3

rO.2

1.9

2.1

2.0

4.7

2.2

I
II

r-1.7
rO.l

1.0
r2.0

r2.7
rl.8

r4.9
r5.4

r-0.5
r-0.9

6.6
r5.3

7.5
r6.7

6.9
r5.7

-31.7
r-9.7

2.8
4.3

Percent change from corresponding quarter of previous year
1988

I
II
III
IV

ANNUAL
1989

I
II

r3.8
r2.8
rl.8
rl.3

7.4
6.6
5.4
4.7

r3.5
r3.8
r3.5
r3.4

r3.9
r4.5
r4.6
r4.4

rO.O
rO.6
rO.4
rO.O

0.1
1.7
2.8
3.1

1.5
1.4
2.2
3.3

0.5
1.6
2.6
3.1

7.5
5.4
-1.3
7.9

1.1
2,0
2.2
3.5

r2.3

6.0

r3.6

r4.3

rO.2

1.9

2.1

2.0

4.7

2.2

r-0.1
r-0.2

3.2
r2.6

r3.4
2.8

r4.9
5.0

rO.l
-0.2

5.0
r5.2

4.9
r5.9

5.0
r5.4

-5.8
r-9.7

4.0
4.0

See footnotes following table 6.
r=revised



November 2, 1989
Source: Bureau of Labor Statistics

(12)

SOURCE: Output data from the 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 third revisions after an additional 60 days. In the business sector, the
probability is 0.95 that the third publication (third revision) of a quarterly
index of output per hour of all persons will differ from the initial value by
between -1.8 and +2.1 index points. This interval is based on the performance
of this measure betveen the second quarter of 1976 and the third quarter of
1988.
Footnotes, Tables 1-6
(1) Wages and salaries of employees plus employers1 contributions for social
insurance and private benefit plans. Except for nonftnancial
corporations, w^ere 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
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 dat* 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 profits with inventory valuation and
capital consumption adjustments.