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Internet address: Historical, technical information: Current data: Media contact: http://stats.bls.gov (202) 606-5606 (202) 606-7828 (202) 606-5902 USDL 96-497 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 10:00 A.M. EST THURSDAY, DECEMBER 5, 1996. PRODUCTIVITY AND COSTS Third Quarter 1996 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 third quarter of 1996. The seasonally-adjusted annual rates of productivity growth in the third quarter were: 0.0 percent in the business sector, and -0.3 percent in the nonfarm business sector. In the business sector, productivity was unchanged as a 2.1 percent output increase in the third quarter was accompanied by a nearly-equal increase (2.0 percent) in the hours of all persons engaged in the sector. Similarly, labor productivity in the nonfarm business sector fell as hours of all persons rose 2.1 percent, but output grew only 1.8 percent. In manufacturing, revised productivity increases in the third quarter were: 6.3 percent in manufacturing, 8.3 percent in durable goods manufacturing, and 3.9 percent in nondurable goods manufacturing. The third-quarter productivity increase in manufacturing occurred as output rose at a 5.6 percent rate and hours fell 0.7 percent. Output and hours in manufacturing, which includes about 18 percent of U.S. business sector employment, tend to vary more from quarter to quarter than data for the more aggregate business and nonfarm business sectors. Third-quarter measures are summarized in table A and appear in detail in tables 1 through 5. --------------------------------------------------------------------Table A. Productivity and costs: Revised third-quarter 1996 measures (Seasonally adjusted annual rates) --------------------------------------------------------------------Real Hourly hourly Unit Produccompen- compenlabor Sector tivity Output Hours sation sation costs --------------------------------------------------------------------Percent change from preceding quarter Business 0.0 2.1 2.0 3.8 1.5 3.8 Nonfarm business -0.3 1.8 2.1 3.4 1.1 3.7 Manufacturing 6.3 5.6 -0.7 4.6 2.3 -1.6 Durable 8.3 7.7 -0.6 4.6 2.3 -3.4 Nondurable 3.9 3.0 -0.9 4.7 2.3 0.7 --------------------------------------------------------------------Percent change from same quarter a year ago Business 0.7 2.6 1.9 3.9 0.9 3.2 Nonfarm business 0.3 2.4 2.1 3.7 0.7 3.4 Manufacturing 4.6 4.1 -0.5 3.7 0.8 -0.9 Durable 6.0 6.8 0.8 3.1 0.2 -2.7 Nondurable 3.0 0.6 -2.3 4.4 1.4 1.4 --------------------------------------------------------------------- The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources. Business From the second quarter to the third quarter of 1996, business sector productivity was unchanged. As revised, output rose 2.1 percent, and hours of all persons engaged in the sector increased 2.0 percent (seasonally adjusted annual rates). During the second quarter of 1996, productivity had increased 1.2 percent (as revised), as output rose 5.0 percent and hours rose 3.8 percent (table 1). Hourly compensation increased 3.8 percent during the third quarter of 1996, down from a 4.3 percent rise in the second quarter. This measure includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Unit labor costs rose 3.8 percent in the third quarter and 3.1 percent in the previous quarter. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), rose 1.5 percent in the third quarter after increasing 0.4 percent in the second quarter of 1996. The implicit price deflator for the business sector, which reflects changes in both unit labor costs and unit nonlabor payments, increased at a 1.2 percent annual rate in the third quarter of 1996, down from the 2.4 percent increase posted in the previous quarter. Nonfarm business Productivity decreased 0.3 percent in the nonfarm business sector during the third quarter of 1996 as output rose 1.8 percent and hours of all persons increased 2.1 percent. This was the first decline in productivity since a 1.2 percent drop during the fourth quarter of 1995. During the second quarter of 1996, productivity had increased 0.6 percent in the nonfarm business sector, reflecting a gain of 4.8 percent in output coupled with a 4.1 percent rise in hours (table 2). Hourly compensation increased at a 3.4 percent annual rate in the third quarter, compared with a 3.9 percent increase one quarter earlier. When the rise in the CPI-U is taken into account, real hourly compensation rose at a 1.1 percent annual rate in the third quarter. Real hourly compensation has now risen in eight consecutive quarters. Unit labor costs increased 3.7 percent in the third quarter of 1996 and 3.3 percent in the second quarter. The implicit price deflator rose 1.1 percent in the third quarter of 1996, reflecting both the increase in unit labor costs and a 3.5 percent drop in unit nonlabor payments. In the second quarter, the implicit price deflator for the nonfarm business sector had increased 2.1 percent. Manufacturing Productivity increased 6.3 percent in manufacturing in the third quarter of 1996, as output rose 5.6 percent and hours of all persons fell 0.7 percent (seasonally adjusted annual rates). This increase in labor productivity was more than double the 2.9 percent increase posted in the second quarter, when output rose 7.1 percent and hours increased 4.1 percent. Manufacturing productivity has increased in every quarter since the second quarter of 1993 (when it declined 0.3 percent). In the durable goods industries, productivity grew 8.3 percent in the third quarter as output rose 7.7 percent and hours fell 0.6 percent. In the nondurable goods industries, thirdquarter productivity grew 3.9 percent as output rose 3.0 percent and hours dropped 0.9 percent (tables 3, 4, and 5). Hourly compensation of all manufacturing workers rose 4.6 percent during the third quarter and 5.8 percent during the second quarter (seasonally adjusted annual rates). Real hourly compensation increased 2.3 percent when the increase in the CPI-U is taken into account. During the second quarter, real hourly compensation rose 1.9 percent. Unit labor costs fell at a 1.6 percent annual rate in the third quarter of 1996 as the 6.3 percent productivity increase in the manufacturing sector exceeded the 4.6 percent increase in hourly compensation. Unit labor costs rose 2.8 percent in the second quarter of 1996. In durable goods industries, these costs fell 3.4 percent in the third quarter of 1996 and have fallen in 10 of the last 12 quarters. A 0.7 percent increase in unit labor costs was recorded in nondurable goods in the third quarter, down from the 1.6 percent increase posted in the second quarter of 1996. -------------------------------------------------------------------------Table B. Nonfinancial corporations: Third-quarter 1996 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 1996 III 3.6 5.8 2.2 4.1 1.7 0.5 -1.3 0.0 -------------------------------------------------------------------------Percent change from same quarter a year ago 1996 III 2.2 4.5 2.2 3.7 0.7 1.5 3.6 1.0 -------------------------------------------------------------------------- Nonfinancial Corporations Third-quarter 1996 measures of productivity and costs also were announced today for nonfinancial corporations (tables B and 6). Output per all-employee hour rose at a 3.6 percent annual rate, compared with a 1.5 percent increase during the second quarter (as revised). Output increased 5.8 percent in the third quarter of 1996, while hours of all employees increased 2.2 percent. The sector includes 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. Hourly compensation increased 4.1 percent in the third quarter; it had risen 3.9 percent in the second quarter. When the rise in the CPI-U is taken into account, real hourly compensation increased 1.7 percent in the third quarter--the first increase reported in 1996. Real hourly compensation was unchanged in the second quarter and had fallen 0.5 percent in the first quarter of the year. Unit labor costs for nonfinancial corporations rose 0.5 percent in the third quarter, after increasing 2.4 percent during the previous quarter. Unit nonlabor costs fell 1.1 percent in the third quarter, and unit profits dropped at a 1.3 percent annual rate. This was the first decrease in unit profits in calendar year 1996. The implicit price deflator for the output of nonfinancial corporations was unchanged in the third quarter of 1996, after demonstrating an increase in every quarter since a 0.2 percent decline was posted in the first quarter of 1986. -------------------------------------------------------------------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 -------------------------------------------------------------------Third quarter 1996 Business: Previous 0.3 2.4 2.0 4.3 2.0 4.0 Current 0.0 2.1 2.0 3.8 1.5 3.8 Nonfarm business: Previous 0.2 2.3 2.1 3.9 1.6 3.7 Current -0.3 1.8 2.1 3.4 1.1 3.7 Manufacturing: Previous 6.3 5.4 -0.8 4.6 2.2 -1.6 Current 6.3 5.6 -0.7 4.6 2.3 -1.6 -------------------------------------------------------------------- Revised Measures Current and previous measures for the third quarter of 1996 for the business, nonfarm business, and manufacturing sectors are compared in table C. The quarterly movements differ from those reported on November 7, based on the information available at that time. The productivity and cost measures also were revised to reflect the results of the 1995 Hours at Work Survey (HWS), which are now available. This survey is used to adjust the number of hours for which private nonfarm employees are paid, as reported in the BLS Current Establishment Survey, to hours at the workplace. For 1995, these new results show that hours of all persons increased more than had originally been reported. In the nonfarm business sector, hours of all persons grew 2.4 percent in 1995 rather than 2.0 percent, as previously reported. All of the increase in the ratio of hours at work to hours paid occurred outside of the manufacturing sector, where the increase in the hours of all persons remained 0.1 percent for the calendar year. Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EST, Tuesday, February 11, 1997. Preliminary fourth-quarter and annual 1996 measures will be released at that time. Scheduled release dates for productivity and costs measures for major sectors of the U.S. economy in 1997 are: ----------------------------------------------Reference period 1997 release date 1996: Fourth quarter, Annual February 11 Fourth quarter, Annual March 11 (revised) 1997: First quarter May 7 First quarter (revised) June 18 Second quarter August 12 Second quarter (revised) September 9 Third quarter November 13 Third quarter (revised) December 4 ----------------------------------------------- These dates are based on presently available schedules for the release of underlying source data in 1997. Each issue of Productivity and Costs contains a "Next release date" paragraph which readers should use to confirm the dates above. TECHNICAL NOTES Labor Hours: The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on total employment and average weekly paid hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly paid hours are adjusted to hours at work using the BLS Hours at Work survey, conducted for this purpose. Data from the BLS Current Population Survey (CPS) are used for farm labor; in the nonfarm sector, the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors, and unpaid family workers. Output: Business sector output is an annual-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: General government, nonprofit institutions, paid employees of private households, and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor inputs. Business output accounted for about 76 percent of the value of GDP in 1992. Nonfarm business, which also excludes farming, accounted for about 75 percent of GDP in 1992. Annual manufacturing indexes are constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the Census with deflators from the BEA. These deflators are based on data from the BLS producer price program and other sources. The industry shipments are aggregated using annual weights, and intrasector transactions are removed. Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve System adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. Durables include the following 2-digit SIC industries: Primary metal industries; fabricated metal products; nonelectrical machinery; industrial and commercial machinery and computer equipment; electronic and other electrical equipment; transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass and concrete products; and miscellaneous manufactures. Nondurables include: Food and kindred products, tobacco products, textile mill products, apparel products, paper and allied products, printing and publishing, chemicals and chemical products, petroleum refining and related industries, rubber and plastic products, and leather and leather products. Nonfinancial corporate output is an annual-weighted index constructed by excluding from GDP the following outputs: General government; nonprofit institutions; employees of private households; the rental value of owner-occupied dwellings; unincorporated business; and those corporations which are depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. Nonfinancial corporations accounted for about 52 percent of the value of GDP in 1992. Productivity: These productivity measures describe the relationship between real output and the labor time involved in its production. They show the changes from period to period in the amount of goods and services produced per hour. Although these measures relate output to hours at work of all persons engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of production. Rather, they reflect the joint effects of many influences, including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of production; managerial skill; and the characteristics and effort of the work force. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours CompensacompensaUnit Unit nonImplicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------Indexes 1992=100 1994 1995 I II III IV r100.5 r100.6 101.1 r101.1 104.9 106.7 107.7 108.7 r104.4 r106.0 106.6 r107.6 104.0 104.2 104.7 r105.5 r99.5 99.0 98.6 r98.8 103.6 103.6 103.6 104.4 104.5 105.7 107.6 107.8 103.9 104.4 105.1 105.6 ANNUAL 100.7 107.0 106.2 104.5 99.0 103.8 106.5 104.7 I II III IV r100.4 r100.8 r101.2 r101.0 108.8 109.0 110.3 110.4 r108.4 r108.2 r109.0 r109.3 r106.2 r107.3 r108.3 r109.4 r98.8 r98.9 r99.3 r99.8 105.8 106.5 r107.0 r108.3 107.4 r107.8 r108.3 r106.7 106.4 106.9 107.5 107.8 ANNUAL r100.8 109.6 r108.8 r107.8 r99.2 r106.9 r107.6 107.1 1996 I r101.5 111.2 r109.6 r110.3 r99.8 r108.6 r107.4 108.2 II r101.8 112.6 r110.6 r111.4 r99.9 r109.4 r107.7 108.8 III r101.8 r113.2 r111.1 r112.5 r100.2 r110.5 r106.8 109.1 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV r-1.7 r0.5 r1.9 r0.2 1.7 6.9 4.1 3.8 r3.5 r6.4 r2.1 r3.6 r2.8 r0.7 r2.0 r2.9 r0.8 -1.8 r-1.7 r0.7 4.6 0.2 r0.1 2.8 -1.3 4.6 7.3 r0.8 2.4 1.8 2.7 2.0 ANNUAL 0.5 4.2 3.7 1.9 -0.6 1.4 3.5 2.2 I II III IV r-2.6 r1.4 r1.4 -0.6 0.3 0.7 4.8 0.5 r3.0 r-0.7 r3.3 1.1 r2.8 r4.1 r3.6 r4.3 r0.0 r0.7 r1.5 1.9 5.6 r2.6 r2.1 5.0 r-1.4 r1.3 1.8 -5.6 3.0 2.2 2.0 1.0 ANNUAL r0.1 2.5 r2.4 r3.1 r0.3 r3.0 1.0 2.3 1996 I r2.1 3.0 r0.8 r3.2 r0.0 r1.1 2.4 1.5 II r1.2 5.0 r3.8 r4.3 r0.4 r3.1 r1.1 2.4 III r0.0 r2.1 2.0 r3.8 r1.5 r3.8 r-3.3 1.2 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV r0.3 0.8 1.1 r0.2 3.4 4.5 4.8 4.1 r3.1 r3.6 3.6 r3.9 r2.3 r1.9 1.9 r2.1 -0.2 r-0.5 -1.0 r-0.5 2.0 1.0 0.8 1.9 2.4 3.7 5.1 2.8 2.2 2.0 2.3 2.2 ANNUAL 0.5 4.2 3.7 1.9 -0.6 1.4 3.5 2.2 I II III IV r0.0 r0.2 r0.1 r-0.1 3.8 2.2 2.4 1.6 r3.8 r2.0 r2.3 r1.7 r2.1 r3.0 r3.4 r3.7 r-0.7 r-0.1 r0.7 r1.0 r2.1 2.8 3.3 r3.8 r2.8 r2.0 r0.6 r-1.0 2.4 2.5 2.3 2.0 ANNUAL r0.1 2.5 r2.4 r3.1 r0.3 r3.0 1.0 2.3 I r1.1 2.2 r1.1 r3.8 r1.0 2.7 -0.1 1.7 II 1.0 3.3 2.2 r3.8 1.0 2.8 -0.1 1.7 III 0.7 r2.6 r1.9 r3.9 r0.9 r3.2 r-1.4 1.5 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. December 5, 1996 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 1994 1995 I II III IV r100.3 r100.6 101.0 r101.1 104.9 106.7 107.8 108.8 104.6 106.1 106.7 r107.6 r103.8 r104.1 r104.5 r105.4 r99.2 r98.9 98.4 r98.7 103.4 103.5 103.5 r104.2 r104.8 106.3 108.4 108.4 103.9 104.5 105.3 105.7 ANNUAL 100.7 107.0 106.3 104.3 98.8 103.7 107.0 104.9 I II III IV r100.5 r100.9 r101.3 r101.1 109.0 109.2 110.6 110.7 r108.4 r108.3 r109.1 r109.5 r106.2 r107.2 r108.2 r109.3 r98.7 r98.8 r99.2 r99.6 105.6 106.3 106.8 r108.1 r108.2 r108.5 r108.9 r107.1 106.5 107.1 107.5 107.8 ANNUAL r100.9 109.9 r108.9 r107.7 r99.1 106.7 r108.2 107.2 1996 I r101.5 111.4 r109.8 r110.2 r99.7 r108.5 r107.4 108.1 II r101.7 112.8 r110.9 r111.3 r99.7 r109.4 r107.3 108.7 III r101.6 r113.3 r111.5 r112.2 r100.0 r110.4 r106.4 109.0 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV r-1.8 1.0 r1.7 r0.4 0.8 7.0 4.2 4.0 r2.7 r6.0 r2.4 r3.6 r2.9 r1.3 r1.8 r3.3 r0.9 -1.2 r-1.9 r1.0 r4.9 0.3 0.1 2.9 r-1.7 5.6 r8.2 r0.1 2.5 2.2 2.9 1.9 ANNUAL 0.5 4.0 3.5 2.1 -0.5 1.5 3.5 2.3 I II III IV r-2.3 r1.5 r1.8 r-1.2 0.6 0.9 5.0 0.3 r2.9 r-0.6 r3.2 1.5 r2.9 r4.0 r3.7 r4.0 r0.1 r0.6 r1.6 1.6 r5.3 r2.5 1.9 5.2 r-0.9 r1.1 r1.4 -6.4 3.0 2.0 1.7 0.9 ANNUAL r0.3 2.7 r2.4 r3.2 r0.3 r2.9 r1.1 2.2 1996 I r1.9 2.7 r0.8 r3.4 r0.2 1.5 1.1 1.4 II r0.6 4.8 r4.1 r3.9 r0.1 3.3 -0.1 2.1 III r-0.3 r1.8 2.1 r3.4 r1.1 3.7 -3.5 1.1 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV r0.2 r0.9 0.9 r0.3 3.3 4.3 4.3 4.0 r3.1 r3.4 3.4 r3.7 r2.2 r2.0 2.0 r2.3 r-0.3 r-0.4 -0.8 r-0.3 2.0 1.1 1.1 2.0 2.1 3.9 5.1 3.0 2.1 2.1 2.5 2.4 ANNUAL 0.5 4.0 3.5 2.1 -0.5 1.5 3.5 2.3 I II III IV r0.2 r0.3 r0.3 r-0.1 3.9 2.4 2.6 1.7 r3.7 r2.1 r2.3 r1.8 r2.3 r3.0 r3.5 r3.7 r-0.5 r-0.1 r0.8 r1.0 r2.1 2.7 r3.1 r3.7 r3.2 r2.1 r0.4 r-1.2 2.5 2.5 2.1 1.9 ANNUAL r0.3 2.7 r2.4 r3.2 r0.3 r2.9 r1.1 2.2 I r1.0 2.2 r1.2 r3.8 r1.0 2.8 -0.8 1.5 II 0.8 3.2 2.4 3.8 0.9 3.0 -1.1 1.5 III 0.3 r2.4 r2.1 r3.7 r0.7 3.4 -2.3 1.4 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. December 5, 1996 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 1994 1995 I II III IV 104.8 106.2 106.6 107.7 107.3 109.5 110.9 113.0 102.4 103.2 104.0 r104.9 104.4 104.7 105.5 106.4 99.9 99.5 99.4 99.6 99.7 98.6 99.0 98.8 ANNUAL 106.1 110.2 103.8 105.1 99.5 99.0 I II III IV 108.3 r109.1 r110.5 111.5 114.1 113.5 114.2 114.6 105.3 r104.0 103.4 102.8 107.2 r108.4 109.7 r110.9 99.7 99.9 100.6 r101.1 99.0 99.4 99.3 99.4 ANNUAL 109.8 114.1 103.9 109.0 r100.4 99.3 1996 I 113.0 115.3 102.0 r111.0 r100.4 98.2 II 113.8 117.3 r103.0 112.5 100.8 98.9 III r115.6 r118.9 r102.8 113.8 101.4 98.5 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV 6.7 5.5 1.7 4.1 8.8 8.5 5.1 7.9 2.0 2.9 3.4 3.6 3.3 1.1 r3.2 r3.2 1.3 -1.4 -0.6 0.9 -3.1 -4.1 1.5 -0.9 ANNUAL 4.0 6.5 2.4 2.7 0.1 -1.2 I II III IV r2.5 2.7 5.3 3.7 3.9 -2.1 2.6 1.4 1.4 -4.7 -2.5 -2.2 r3.3 4.3 5.1 r4.2 0.4 r0.9 3.0 1.7 0.8 1.5 -0.2 0.4 ANNUAL r3.5 3.5 0.1 3.7 r0.9 0.2 1996 I 5.6 2.4 r-3.0 0.4 -2.8 -4.9 II 2.9 7.1 4.1 5.8 1.9 2.8 III 6.3 r5.6 r-0.7 4.6 r2.3 -1.6 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV 3.1 4.5 4.5 4.5 4.7 6.5 7.1 7.6 1.5 1.9 2.4 3.0 3.1 2.8 2.9 2.7 0.6 0.4 0.0 0.0 0.0 -1.7 -1.6 -1.7 ANNUAL 4.0 6.5 2.4 2.7 0.1 -1.2 I II III IV 3.4 2.7 3.6 3.5 6.3 3.6 3.0 1.4 2.8 r0.8 -0.6 -2.0 2.7 3.5 r4.0 4.2 -0.2 0.4 1.3 1.5 -0.7 0.7 0.3 0.7 ANNUAL r3.5 3.5 0.1 3.7 r0.9 0.2 I 4.3 1.0 -3.1 3.5 0.7 -0.8 II 4.4 3.4 -1.0 3.8 0.9 -0.5 III 4.6 4.1 -0.5 3.7 0.8 r-0.9 -------------------------------------------------------------------------------------------------See footnotes following Table 6. December 5, 1996 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 1994 1995 I II III IV r106.9 108.2 109.0 r110.4 110.4 112.6 114.8 117.5 103.2 104.1 105.3 r106.5 r104.2 104.5 105.3 r106.1 99.7 99.3 99.1 99.3 97.5 96.6 96.6 96.1 ANNUAL 108.4 113.8 105.0 104.8 99.2 96.7 I II III IV r111.7 r112.1 r113.9 r115.1 119.5 119.0 120.4 121.5 r107.0 r106.1 r105.8 r105.6 r106.9 r108.0 r109.4 r110.4 r99.4 r99.5 r100.3 r100.7 r95.8 96.3 96.1 95.9 ANNUAL r113.1 120.1 r106.1 r108.6 r100.0 96.0 1996 I r117.2 123.1 r105.0 r109.7 r99.3 93.6 II r118.3 126.3 r106.8 r111.6 r100.0 94.3 III r120.7 128.6 r106.6 r112.8 r100.5 93.5 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV r7.3 4.8 r3.2 r5.0 11.0 8.6 7.8 9.9 r3.4 3.6 r4.5 r4.7 r3.0 1.0 r3.1 r3.1 r0.9 -1.5 r-0.7 r0.8 -4.1 -3.7 -0.1 -1.8 ANNUAL 4.9 8.5 3.5 2.5 0.0 -2.2 I II III IV r4.9 r1.5 r6.5 4.3 7.0 -1.9 5.1 3.6 r2.0 r-3.3 r-1.4 -0.7 r3.2 r3.9 r5.4 3.6 r0.3 r0.5 r3.3 1.2 -1.6 2.4 -1.0 -0.7 ANNUAL r4.4 5.5 r1.1 r3.6 r0.8 -0.7 1996 I r7.7 5.5 r-2.0 r-2.3 r-5.4 -9.3 II 3.7 10.7 r6.8 6.8 r2.8 3.0 III r8.3 r7.7 r-0.6 4.6 r2.3 r-3.4 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV 4.4 r5.2 r5.9 r5.1 6.8 8.4 9.5 9.3 2.3 r3.0 3.5 r4.0 3.1 2.8 2.9 r2.5 0.6 r0.3 0.0 r-0.1 -1.2 -2.4 -2.8 -2.4 ANNUAL 4.9 8.5 3.5 2.5 0.0 -2.2 I II III IV r4.5 r3.6 r4.4 r4.3 8.3 5.6 4.9 3.4 r3.7 r1.9 r0.5 r-0.9 r2.6 r3.3 r3.9 r4.0 r-0.3 r0.2 r1.2 r1.3 -1.8 -0.3 -0.5 -0.2 ANNUAL r4.4 5.5 r1.1 r3.6 r0.8 -0.7 I r5.0 3.0 r-1.9 r2.6 r-0.1 -2.2 II 5.5 6.2 0.6 3.3 0.4 -2.1 III 6.0 6.8 r0.8 3.1 0.2 -2.7 -------------------------------------------------------------------------------------------------See footnotes following Table 6. December 5, 1996 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 1994 1995 I II III IV r102.9 r104.4 104.4 r105.2 104.3 106.3 106.9 108.3 101.4 101.9 102.4 r102.9 r104.6 r104.9 r105.6 r106.4 r100.0 99.6 99.5 99.7 101.7 100.4 101.2 101.1 ANNUAL 104.2 106.5 102.2 105.3 99.7 101.1 I II III IV r105.3 r106.4 r107.4 r108.2 108.4 107.8 107.7 107.3 r103.0 r101.3 r100.2 r99.1 r107.3 r108.6 r109.7 r110.9 r99.8 r100.1 r100.6 r101.2 102.0 102.0 102.1 102.5 ANNUAL r106.9 107.8 r100.9 r109.2 r100.5 102.1 1996 I r109.1 106.9 r98.0 r112.2 r101.5 102.9 II r109.6 107.5 r98.1 r113.2 r101.5 103.3 III r110.7 r108.3 r97.9 r114.5 r102.0 r103.5 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV r6.3 6.0 r0.1 r3.2 6.4 8.1 2.0 5.4 0.1 1.9 r1.9 r2.1 r3.6 1.1 r3.1 r3.1 r1.6 -1.4 r-0.7 r0.8 r-2.5 -4.7 3.0 -0.2 ANNUAL 3.1 4.1 1.0 2.6 0.1 -0.5 I II III IV r0.1 r4.4 r3.9 3.0 0.6 -2.5 -0.3 -1.4 r0.5 r-6.7 r-4.1 -4.3 r3.4 r4.6 r4.2 4.7 r0.5 r1.2 r2.1 r2.2 3.3 0.2 0.3 1.6 ANNUAL r2.6 1.3 r-1.3 r3.7 r0.8 1.0 1996 I r3.1 -1.5 -4.4 r4.7 r1.4 1.6 II 2.0 2.4 r0.3 r3.7 -0.2 1.6 III r3.9 r3.0 r-0.9 4.7 2.3 r0.7 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV 1.9 r4.0 3.2 r3.9 2.4 4.4 4.3 5.4 0.5 0.5 1.0 r1.5 3.0 r2.7 2.6 r2.7 0.5 0.2 -0.2 r0.1 1.1 -1.2 -0.6 -1.1 ANNUAL 3.1 4.1 1.0 2.6 0.1 -0.5 I II III IV r2.3 r1.9 r2.9 r2.8 4.0 1.3 0.7 -0.9 r1.6 r-0.6 r-2.1 r-3.7 r2.7 r3.5 r3.8 r4.2 r-0.2 r0.4 r1.1 r1.5 0.3 1.6 0.9 1.3 ANNUAL r2.6 1.3 r-1.3 r3.7 r0.8 1.0 I r3.6 -1.4 r-4.9 r4.5 r1.7 0.9 II 3.0 -0.2 -3.1 4.3 1.4 1.3 III r3.0 r0.6 -2.3 4.4 1.4 1.4 -------------------------------------------------------------------------------------------------See footnotes following Table 6. December 5, 1996 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 1994 1995 I II III IV 102.7 r102.6 102.4 r102.7 107.4 108.9 109.7 111.5 r104.5 r106.1 107.0 r108.5 r103.8 r103.8 104.1 r104.7 99.2 98.6 98.0 r98.0 101.0 101.2 101.6 101.9 102.1 98.7 99.3 98.3 101.3 100.5 101.0 100.9 120.5 134.5 136.5 141.5 102.8 103.1 103.7 104.0 ANNUAL 102.6 109.3 106.6 104.1 98.5 101.4 99.6 100.9 133.4 103.4 I II III IV r101.8 r102.4 r103.7 r104.3 111.4 112.1 114.0 115.2 r109.4 r109.4 r110.0 r110.5 r105.3 r106.3 r107.3 r108.3 r97.9 r98.0 r98.4 r98.8 103.4 103.8 103.5 103.9 100.0 100.9 99.7 100.0 102.5 103.0 102.5 102.8 130.9 130.1 142.1 140.4 104.7 105.1 105.5 105.7 ANNUAL r103.1 113.2 r109.8 r106.8 r98.3 103.6 100.1 102.7 136.0 105.2 1996 I r104.6 115.8 r110.7 r109.0 r98.6 104.3 99.3 102.9 145.1 106.1 II r105.0 117.4 r111.9 r110.1 r98.7 104.9 98.4 103.1 147.8 106.5 III 105.9 119.1 112.5 111.2 99.1 105.0 98.1 103.1 147.3 106.5 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1994 1995 I II III IV r1.0 -0.5 r-0.6 r1.1 5.0 5.7 2.8 6.7 r4.0 r6.3 r3.5 r5.5 r3.6 0.0 r1.1 r2.4 r1.6 -2.5 r-2.6 r0.1 2.6 0.5 1.7 1.2 12.0 -12.8 2.4 -3.7 5.1 -3.3 1.9 -0.1 -22.4 55.2 5.9 15.6 2.2 1.2 2.3 1.4 ANNUAL 1.3 5.6 4.2 1.8 -0.7 0.5 -0.3 0.3 16.2 1.7 I II III IV r-3.4 r2.3 r4.9 r2.4 -0.2 2.4 7.2 4.3 r3.3 r0.2 r2.2 1.8 r2.4 r3.8 r3.7 r3.9 r-0.5 r0.4 r1.7 r1.5 6.0 1.5 -1.1 1.5 7.0 3.7 -4.7 1.0 6.3 2.1 -2.1 1.4 -26.8 -2.4 42.2 -4.8 2.4 1.6 1.6 0.7 ANNUAL r0.4 3.5 r3.0 r2.6 r-0.2 2.2 0.6 1.8 1.9 1.8 1996 I r1.3 2.2 r0.9 r2.7 r-0.5 1.5 -2.6 0.4 14.3 1.7 II r1.5 5.6 r4.1 r3.9 r0.0 2.4 -3.6 0.8 7.5 1.5 III 3.6 5.8 2.2 4.1 1.7 0.5 -1.1 0.1 -1.3 0.0 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1994 1995 1996 I II III IV r2.6 r1.7 1.0 r0.2 6.1 5.8 5.2 5.1 r3.4 r4.1 4.2 r4.8 r2.3 r1.9 1.6 r1.8 r-0.2 r-0.5 -1.2 r-0.9 -0.3 0.2 0.7 1.5 1.5 -1.3 -0.6 -0.9 0.2 -0.2 0.3 0.9 17.1 20.6 18.1 10.2 1.5 1.6 1.9 1.8 ANNUAL 1.3 5.6 4.2 1.8 -0.7 0.5 -0.3 0.3 16.2 1.7 I II III IV r-0.9 r-0.2 r1.2 r1.5 3.7 2.9 4.0 3.4 r4.6 r3.1 r2.8 r1.9 r1.5 r2.4 r3.1 r3.5 r-1.4 r-0.6 r0.4 r0.8 2.4 2.6 1.9 1.9 -2.1 2.3 0.5 1.7 1.1 2.5 1.5 1.9 8.6 -3.3 4.1 -0.8 1.8 1.9 1.8 1.6 ANNUAL r0.4 3.5 r3.0 r2.6 r-0.2 2.2 0.6 1.8 1.9 1.8 I r2.7 4.0 r1.3 r3.5 r0.8 0.8 -0.7 0.4 10.9 1.4 II 2.5 4.8 2.2 3.6 0.7 1.1 -2.5 0.1 13.6 1.4 III 2.2 4.5 2.2 3.7 0.7 1.5 -1.6 0.7 3.6 1.0 --------------------------------------------------------------------------------------------------------See footnotes following Table 6. December 5, 1996 r=revised Source: Bureau of Labor Statistics SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor Statistics and the Bureau of Economic Analysis. RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are first published 30 days after the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the 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 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