Economic News Release

Productivity and Costs News Release


Internet address: http://www.bls.gov/lpc/       USDL 08-0171
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                        PRODUCTIVITY AND COSTS
                    Preliminary Fourth Quarter and
                       Annual Averages for 2007
                       
        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 fourth quarter and for the full year 2007.  The seasonally 
adjusted annual rates of productivity change in the fourth quarter and the 
annual average changes were:

                                    Fourth              Annual averages 
                                    quarter               2006-2007
                                    
Business sector                       0.6                    1.6 
Nonfarm business sector               1.8                    1.6 

        In the fourth quarter of 2007, productivity increased 0.6 percent in the 
business sector, with output increasing 0.2 percent and hours decreasing 0.5 
percent.  In the nonfarm business sector, productivity rose 1.8 percent as 
output grew 0.4 percent and hours fell 1.5 percent.  When the annual averages 
for 2007 were compared with annual averages for 2006, productivity rose 1.6 
percent in the business and nonfarm business sectors--slightly more than the 
1.0 percent gain in both sectors from 2005 to 2006.  

        In the manufacturing sector, increases in productivity were:
        
                                    Fourth              Annual averages 
                                    quarter               2006-2007
                                    
Manufacturing sector                  2.5                    2.9 
  Durable goods manufacturing         4.6                    4.3 
  Nondurable goods manufacturing     -0.9                    1.1
  
  
        Manufacturing productivity grew at a 2.5 percent annual rate in the 
fourth quarter, as output fell but hours fell faster.  On an annual average 
basis, output per hour in the manufacturing sector posted a 2.9 percent 
increase in 2007.  Output and hours in manufacturing, which includes about 12 
percent of U.S. business-sector employment, tend to vary more from quarter to 
quarter than data for the aggregate business and nonfarm business sectors. 
Fourth-quarter productivity and related measures are summarized in table A, 
and annual average data in table B.  Detailed information is presented in 
tables 1 through 5.


=============================================================================
The data in this release do not reflect the annual benchmark revision of the 
BLS Current Employment Statistics program data released on February 1, 2008.  
This benchmark will be incorporated in our next release on March 5, 2008.
=============================================================================


------------------------------------------------------------------------------
Table A. Productivity and costs:  Preliminary fourth-quarter 2007 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------
                           Percent change from preceding quarter
                
Business                 0.6        0.2    -0.5       2.8       -1.4      2.2
Nonfarm business         1.8        0.4    -1.5       3.9       -0.3      2.1
Manufacturing            2.5       -1.9    -4.3       4.2       -0.1      1.7
  Durable                4.6       -1.5    -5.9       5.2        0.9      0.6
  Nondurable            -0.9       -2.4    -1.5       2.6       -1.6      3.5
  
                           Percent change from same quarter a year ago
                
Business                 2.7       2.6     -0.1       3.8       -0.2      1.1
Nonfarm business         2.6       2.6      0.0       3.7       -0.3      1.0
Manufacturing            2.6       1.8     -0.8       3.1       -0.9      0.5
  Durable                4.1       2.8     -1.3       3.1       -0.9     -1.0
  Nondurable             0.7       0.7      0.0       3.3       -0.7      2.6
------------------------------------------------------------------------------


        The data sources and methods used in the preparation of the 
manufacturing series differ from those used in preparing the business and 
nonfarm business series, and these measures are not directly comparable.  
Output measures for business and nonfarm business are based on measures of 
gross domestic product prepared by the Bureau of Economic Analysis of the 
U.S. Department of Commerce.  Quarterly output measures for manufacturing 
reflect indexes of industrial production independently prepared by the Board 
of Governors of the Federal Reserve System.  See Technical Notes for further 
information on data sources.


                   THIRD-TO-FOURTH QUARTER CHANGES, 2007


Business

        Productivity in the business sector increased by 0.6 percent in the 
fourth quarter of 2007, reflecting an increase of 0.2 percent in output and a 
decrease of 0.5 percent in hours of all persons (seasonally adjusted annual 
rates).  Output per hour had risen 6.5 percent in the third quarter of 2007, 
as output rose 5.7 percent and hours fell 0.7 percent.  When the fourth 
quarter of 2007 is compared to the fourth quarter of 2006, business sector 
productivity grew 2.7 percent--the same as the average rate of growth for the 
2000-2006 period.

        Hourly compensation grew 2.8 percent in the fourth quarter of 2007, down 
from a 4.4 percent increase one quarter earlier. This measure includes wages 
and salaries, supplements, employer contributions to employee-benefit plans, 
and taxes.  Real hourly compensation, which takes into account changes in 
consumer prices, decreased 1.4 percent in the fourth quarter of 2007.  
Consumer prices increased at a 4.3 percent annual rate in the fourth quarter 
of 2007, contributing to the decline in real hourly compensation. 

        Unit labor costs, which relate hourly compensation to output per hour, 
increased 2.2 percent in the fourth quarter of 2007 after falling 2.0 percent 
in the third quarter and 1.1 percent in the second quarter.  


Nonfarm business

        In the nonfarm business sector, productivity rose 1.8 percent in the 
fourth quarter of 2007, as output grew 0.4 percent and hours of all persons--
employees, proprietors, and unpaid family workers--fell 1.5 percent 
(seasonally adjusted annual rates).  Productivity grew 6.0 percent in the 
third quarter of 2007 as output rose 5.6 percent and hours fell 0.3 percent 
(table 2).  During the four-quarter period ending with the fourth quarter of 
2007, nonfarm business sector productivity grew 2.6 percent--similar to the 
2.7 percent average rate of growth from 2000 to 2006. 

        Hourly compensation in the nonfarm business sector rose 3.9 percent in 
the fourth quarter of 2007 following a 4.0 percent increase in the third 
quarter.  When the 4.3 percent increase in consumer prices was taken into 
account, real hourly compensation edged down 0.3 percent during the fourth 
quarter of 2007 (seasonally-adjusted annual rates). 

        Unit labor costs rose 2.1 percent in the fourth quarter of 2007, after 
declining 1.9 percent in the third quarter and 1.1 percent the second 
quarter.  The implicit price deflator for nonfarm business output rose 1.6 
percent in the fourth quarter after rising 0.1 percent one quarter earlier.


Manufacturing

        Manufacturing productivity grew 2.5 percent in the fourth quarter of 
2007 as output declined 1.9 percent and hours dropped 4.3 percent (seasonally 
adjusted annual rates).  The decrease in hours was the largest since the 
third quarter of 2003, when hours fell 6.0 percent.  In the third quarter of 
2007, manufacturing productivity increased 4.0 percent, reflecting a 3.9 
percent rise in output and a 0.1 percent decrease in hours (table 3).  In the 
durable goods manufacturing sector, productivity rose 4.6 percent in the 
fourth quarter of 2007, as output declined 1.5 percent and hours fell 5.9 
percent (table 4). In the nondurable goods sector, productivity, output and 
hours all fell in the fourth quarter; output per hour declined 0.9 percent, 
output decreased 2.4 percent and hours declined 1.5 percent (table 5).  

        Hourly compensation of all manufacturing workers increased 4.2 percent 
during the fourth quarter of 2007, reflecting increases of 5.2 percent in 
durable goods industries and 2.6 percent in nondurable goods industries.  
When the increase in consumer prices was taken into account, real hourly 
compensation in total manufacturing decreased 0.1 percent in the fourth 
quarter.  

        Unit labor costs for the manufacturing sector rose 1.7 percent in 
fourth-quarter 2007 following declines of 2.9 percent in the third quarter 
and 3.7 percent in the second quarter.  Unit labor costs rose 0.6 percent in 
durable goods manufacturing and 3.5 percent in nondurable goods industries in 
the fourth quarter.


                   ANNUAL AVERAGE CHANGES, 2006-2007


Business and Nonfarm business

        When annual averages for 2007 were compared with annual averages for 
2006, labor productivity increased 1.6 percent in both the business and 
nonfarm business sectors (table B).    Productivity grew at 1.0 percent in 
both sectors from 2005 to 2006.  From 2000 to 2005, output per hour grew at 
an average annual rate of 3.1 percent in the business sector and 3.0 percent 
in the nonfarm business sector.  Between 1990 and 2000, productivity rose 2.1 
percent per year in the business sector and 2.0 percent per year in nonfarm 
businesses.


------------------------------------------------------------------------------
Table B. Annual average changes in productivity and related measures, 1998-
2007
------------------------------------------------------------------------------
Measure            1998  1999  2000  2001  2002  2003  2004  2005  2006  2007
------------------------------------------------------------------------------
 Business:
 
  Productivity     2.8   3.1   2.9   2.6   4.1   3.8   2.9   2.0   1.0   1.6
  Output           4.8   5.1   3.9   0.3   1.5   3.1   4.2   3.6   3.1   2.3
  Hours            2.0   2.0   1.0  -2.2  -2.5  -0.7   1.3   1.6   2.1   0.7
  Hourly 
  compensation     6.1   4.9   7.1   4.2   3.5   4.1   3.7   4.0   3.9   4.8
  Real hourly 
  compensation     4.6   2.7   3.7   1.4   1.9   1.7   1.1   0.6   0.6   1.9
  Unit labor 
  costs            3.2   1.8   4.1   1.6  -0.5   0.2   0.9   2.0   2.9   3.1
------------------------------------------------------------------------------
 Nonfarm Business:
 
  Productivity     2.8   2.9   2.8   2.5   4.1   3.7   2.7   1.9   1.0   1.6
  Output           5.0   5.2   3.8   0.4   1.5   3.1   4.1   3.6   3.2   2.3
  Hours            2.1   2.2   1.0  -2.0  -2.6  -0.6   1.4   1.6   2.2   0.7
  Hourly 
  compensation     6.0   4.7   7.2   4.0   3.6   4.0   3.6   4.0   3.9   4.8
  Real hourly 
  compensation     4.5   2.5   3.7   1.2   2.0   1.7   0.9   0.7   0.6   1.8
  Unit labor 
  costs            3.1   1.8   4.2   1.5  -0.5   0.3   0.9   2.0   2.9   3.1
 ------------------------------------------------------------------------------
 Manufacturing: 
 
  Productivity     5.4   4.4   4.1   1.6   6.9   6.2   2.1   4.8   4.0   2.9
  Output           5.2   3.8   2.7  -5.1  -0.7   1.0   1.8   3.5   4.9   2.0
  Hours           -0.2  -0.6  -1.3  -6.5  -7.1  -4.9  -0.3  -1.2   0.9  -1.0
  Hourly 
  compensation     5.8   3.9   9.2   2.3   7.3   7.0   2.0   4.2   2.5   4.6
  Real hourly 
  compensation     4.4   1.8   5.7  -0.5   5.6   4.7  -0.6   0.8  -0.8   1.7
  Unit labor 
  costs            0.4  -0.5   4.9   0.7   0.3   0.8  -0.1  -0.6  -1.5   1.6
------------------------------------------------------------------------------


        In 2007, hourly compensation increased 4.8 percent in both the business 
and nonfarm business sectors, following 3.9 percent gains in both sectors 
during 2006.  Real hourly compensation increased 1.9 percent in the business 
sector and 1.8 percent in the nonfarm business sector during 2007 and 0.6 
percent in both sectors during 2006.  

        Unit labor costs increased 3.1 percent in both the business and nonfarm 
sectors in 2007--more than in any year since 2000, when unit labor costs 
increased 4.1 percent and 4.2 percent in the business and nonfarm business 
sectors, respectively.  


Manufacturing

        In manufacturing, labor productivity rose 2.9 percent in 2007, less than 
the 4.2 percent average annual rate from 2000 through 2006.  Output increased 
2.0 percent and hours decreased 1.0 percent in 2007 (table B).  There was a 
4.3 percent increase in durable goods manufacturing productivity in 2007, as 
output rose 2.9 percent and hours fell 1.4 percent.  In nondurable goods 
manufacturing, output per hour increased 1.1 percent; output rose 0.9 percent 
and hours edged down 0.2 percent.  

        The hourly compensation of manufacturing workers increased 4.6 percent 
in 2007, slightly more than the average annual growth rate of 4.2 percent for 
the 2000-2006 time period.  In 2007, hourly compensation rose 4.9 percent in 
durable goods manufacturing and 4.1 percent in nondurable goods 
manufacturing.  Taking into account the rise in consumer prices, real hourly 
compensation in total manufacturing rose 1.7 percent in 2007 after decreasing 
0.8 percent the previous year.
 
        Unit labor costs in manufacturing increased 1.6 percent in 2007, a 
reversal from the 1.5 percent decline in 2006.  In the durable goods 
manufacturing sector unit labor costs edged up 0.6 percent in 2007 following 
a 2.9 percent decline in 2006.  Unit labor costs in nondurable goods 
industries rose 3.0 percent in 2007 after declining 0.5 percent in 2006.   
           
           
Revised Measures

        Current and previous measures for the third quarter of 2007 for the 
business, nonfarm business, and manufacturing sectors are compared in table 
C.  In both the business and nonfarm business sectors, productivity growth 
was lower than reported on Dec. 5.  In the business sector, productivity 
growth was revised down from 6.7 percent to 6.5 percent due to an upward 
revision to hours; output was unchanged.  Nonfarm business sector 
productivity was also revised down--from 6.3 percent to 6.0 percent--
reflecting both a downward revision to output and an upward revision to 
hours.  

        In both the business and nonfarm business sectors, hourly compensation 
grew less than previously reported.  Unit labor costs were similar to those 
previously reported for both the business and nonfarm business sectors, as 
downward revisions to productivity were coupled with downward revisions to 
hourly compensation. 


------------------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------
                                Third quarter 2007
Business:                                               
  Previous               6.7       5.7     -1.0       4.7       2.7      -2.0
  Revised                6.5       5.7     -0.7       4.4       2.4      -2.0
Nonfarm business:                                               
  Previous               6.3       5.7     -0.6       4.2       2.3      -2.0
  Revised                6.0       5.6     -0.3       4.0       2.0      -1.9
Manufacturing:                                          
  Previous               5.0       4.5     -0.5       1.5      -0.3      -3.3
  Revised                4.0       3.9     -0.1       1.0      -0.8      -2.9
------------------------------------------------------------------------------
        
        In the manufacturing sector productivity was revised down in the third 
quarter, reflecting a downward revision to output and an upward revision to 
hours.  Unit labor costs fell less than previously reported as the downward 
revision to productivity was partially offset by a downward revision to 
hourly compensation.
        
        
Revised measures: Nonfinancial Corporations 


        Revised third-quarter productivity and costs measures for nonfinancial 
corporations also were announced today.  In the third quarter of 2007, 
productivity grew less than reported on Dec. 5, reflecting a small 
downward revision to output and a slightly larger upward revision to hours.  
Unit labor costs were revised up as the downward revision to productivity was 
larger than the downward revision to hourly compensation (table D).  


------------------------------------------------------------------------------
Table D.  Nonfinancial corporations: Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
------------------------------------------------------------------------------
                                           Real
                                  Hourly   hourly   Unit              Implicit
         Produc-                  compen-  compen-  labor   Unit      price
         tivity   Output  Hours   sation   sation   costs   profits   deflator
------------------------------------------------------------------------------
                                Third quarter 2007
                                
Previous  4.2      4.7     0.5     4.4      2.5      0.2    -10.1       -1.5
Revised   3.7      4.6     0.8     4.1      2.2      0.4    -11.0       -1.6
------------------------------------------------------------------------------
        
        
                                Next release date

        The next release of Productivity and Costs is scheduled for 8:30 A.M. 
EST, Wednesday, March 5, 2008.  Revised fourth-quarter and annual average 
measures for business, nonfarm business, and manufacturing will be released 
at that time.  This release will incorporate the annual benchmark revision to 
the employment levels in the BLS establishment survey data that were released 
February 1.  All employment and hours series will incorporate new information 
on seasonal patterns.





			   TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include 
hours for all persons working in the sector--wage and salary workers, the 
self-employed and unpaid family workers.  The primary source of hours and 
employment data is the BLS Current Employment Statistics (CES) program, which 
provides monthly survey data on the number of jobs held by wage and salary 
workers in nonfarm establishments.  The CES also provides average weekly paid 
hours of production and nonsupervisory workers in these establishments.  
Weekly paid hours are adjusted to hours at work using data from the National 
Compensation Survey (NCS).  The BLS Hours at Work survey, conducted for this 
purpose, was used for earlier years.  The Office of Productivity and 
Technology estimates average weekly hours at work for nonproduction and 
supervisory workers using information from the Current Population Survey 
(CPS), the CES, and the NCS.
      Data from the CPS are used for farm labor, nonfarm proprietors, and 
nonfarm unpaid family workers.  Estimates of labor input for government 
enterprises are derived from the CPS, the CES, and the National Income and 
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of 
the Department of Commerce.
      The CES measures jobs, counting a person who is employed by two or more 
establishments at each place of employment. In contrast, the CPS features 
measures of employment that count each person only once and classify each 
person according to his or her primary job; hours worked at all jobs by that 
person accrue to his or her primary job.  However, the CPS also collects more 
detailed information on employment and hours worked at primary jobs and all 
other jobs, separately.  The BLS productivity measures use the more detailed 
information on employment and hours to assign all hours worked to the correct 
industrial sector and avoid duplicating hours data from the CES.

Output: Business sector output is an annual-weighted index constructed after 
excluding from gross domestic product (GDP) the following outputs: general 
government, nonprofit institutions, and private households (including owner-
occupied housing). Corresponding exclusions also are made in labor inputs. 
Business output accounted for about 78 percent of the value of GDP in 2000. 
Nonfarm business, which also excludes farming, accounted for about 77 percent 
of GDP in 2000.
      Annual indexes for manufacturing and its durable and nondurable goods 
components are constructed by deflating current-dollar industry value of 
production data from the U.S. Bureau of the Census with deflators from the 
BLS.  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 3-digit NAICS industries: wood product 
manufacturing; nonmetallic mineral product manufacturing; primary metal 
manufacturing; fabricated metal product manufacturing; machinery 
manufacturing; computer and electronic product manufacturing; electrical 
equipment and appliance manufacturing; transportation equipment manu-
facturing; furniture and related product manufacturing; and miscellaneous 
manufacturing. Nondurables include: food manufacturing; beverage and tobacco 
product manufacturing; textile mills; textile product mills; apparel 
manufacturing; leather and allied product manufacturing; paper manufacturing; 
printing and related support activities; petroleum and coal products 
manufacturing; chemical manufacturing; and plastics and rubber products 
manufacturing.
      Nonfinancial corporate output is an annual-weighted index calculated on 
the basis of the costs incurred and the incomes earned from production.  The 
output measure excludes the following outputs from GDP: general government; 
nonprofit institutions; private households; unincorporated business; and 
those corporations classified as offices of bank holding companies, offices 
of other holding companies, or offices in the finance and insurance sector. 
Nonfinancial corporations accounted for about 54 percent of the value of GDP 
in 2000.
      
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.

Labor Compensation: Estimates of labor compensation by major sector, required 
for measures of hourly compensation and unit labor costs, are based primarily 
on employee compensation data from the NIPA, prepared by the BEA.  The 
compensation of employees in general government, nonprofit institutions and 
private households are subtracted from compensation of domestic employees to 
derive employee compensation for the business sector. The labor compensation 
of proprietors cannot be explicitly identified and must be estimated.  This 
is done by assuming that proprietors have the same hourly compensation as 
employees in the same sector.  The quarterly labor productivity and cost 
measures do not contain estimates of compensation for unpaid family workers.  
        
Unit Labor Costs:  The measures of unit labor costs in this release describe 
the relationship between compensation per hour and productivity, or real 
output per hour, and can be used as an indicator of inflationary pressure on 
producers.  Increases in hourly compensation increase unit labor costs; labor 
productivity increases offset compensation increases and lower unit labor 
costs. 

Presentation of the data:  The quarterly data in this release are presented 
in three ways; as index number series where 1992=100, as percent changes from 
the corresponding quarter of the previous year, and as percent changes from 
the previous quarter presented at a compound annual rate.  Annual data are 
presented both as index number series and percent changes from the previous 
year.  
	The index numbers and rates of change reported in the productivity and 
costs news release are rounded to one decimal place.  All percent changes in 
this release and on the BLS web site are calculated using index numbers to 
three decimal places.  These index numbers are available at the BLS web site, 
http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major 
Sector Productivity.  (Telephone 202-691-5606 or email DPRWEB@BLS.GOV)
        
        Information in this release will be made available to sensory-impaired 
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service 
number: 1-800-877-8339.




Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
                                                           Real
   Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
   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

2005       I     134.4      157.2     117.0     161.4       120.3      120.1       128.2      123.1
          II     134.3      158.5     118.0     161.7       119.4      120.4       129.8      123.9
         III     135.9      160.6     118.2     164.2       119.6      120.8       132.0      125.0
          IV     135.5      161.0     118.8     165.4       119.4      122.0       133.0      126.1

      ANNUAL     135.0      159.3     118.0     163.2       119.7      120.9       130.8      124.5

2006       I     136.4      163.2     119.6     168.2       120.9      123.4       133.0      127.0
          II     136.6      164.2     120.2     168.1       119.3      123.0       136.5      128.0
         III     136.1      164.4     120.8     168.7       118.9      124.0       136.6      128.7
          IV     136.5      165.5     121.2     173.4       122.8      127.0       132.2      128.9

      ANNUAL     136.4      164.3     120.5     169.6      r120.5      124.3       134.6      128.2

2007       I     136.6      165.6     121.2     175.7       123.3      128.6       132.9      130.2
          II     137.8      167.3     121.5     176.8       122.2      128.3       135.4      130.9
         III    r140.0     r169.7    r121.2    r178.6      r122.9     r127.6      r136.7     r131.0
          IV     140.2      169.7     121.1     179.9       122.5      128.3       137.5      131.8

      ANNUAL     138.6      168.1     121.3     177.7       122.7      128.2       135.6      131.0

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

2005       I       3.0        3.7       0.7       3.0         1.1        0.0         9.1        3.4
          II      -0.3        3.3       3.6       0.7        -3.1        1.0         5.1        2.6
         III       4.9        5.5       0.6       6.2         0.7        1.3         7.1        3.5
          IV      -1.1        1.0       2.1       2.9        -0.5        4.0         3.1        3.7

      ANNUAL       2.0        3.6       1.6       4.0         0.6        2.0         4.9        3.1

2006       I       2.5        5.5       2.9       7.2         5.1        4.6         0.0        2.8
          II       0.8        2.5       1.7      -0.4        -5.1       -1.2        10.7        3.3
         III      -1.5        0.6       2.2       1.6        -1.6        3.1         0.5        2.1
          IV       1.2        2.6       1.4      11.4        13.8       10.1       -12.4        0.8

      ANNUAL       1.0        3.1       2.1       3.9         0.6        2.9         2.9        2.9

2007       I       0.2        0.2       0.0       5.5         1.6        5.3         2.1        4.1
          II       3.6        4.4       0.8       2.4        -3.3       -1.1         7.7        2.2
         III      r6.5        5.7     r-0.7      r4.4        r2.4       -2.0        r4.1       r0.3
          IV       0.6        0.2      -0.5       2.8        -1.4        2.2         2.3        2.2

      ANNUAL       1.6        2.3       0.7       4.8         1.9        3.1         0.8        2.2

---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2005       I       2.5        3.8       1.2       5.0         1.9        2.4         4.1        3.1
          II       1.5        3.5       2.0       3.8         0.9        2.3         3.6        2.8
         III       2.4        3.9       1.5       4.0         0.3        1.6         5.8        3.2
          IV       1.6        3.4       1.7       3.2        -0.5        1.6         6.1        3.3

      ANNUAL       2.0        3.6       1.6       4.0         0.6        2.0         4.9        3.1

2006       I       1.5        3.8       2.3       4.2         0.5        2.7         3.8        3.1
          II       1.7        3.6       1.8       3.9         0.0        2.2         5.1        3.3
         III       0.2        2.4       2.2       2.8        -0.6        2.6         3.5        3.0
          IV       0.7        2.8       2.1       4.8         2.8        4.1        -0.6        2.2

      ANNUAL       1.0        3.1       2.1       3.9         0.6        2.9         2.9        2.9

2007       I       0.2        1.5       1.3       4.4         1.9        4.3        -0.1        2.6
          II       0.8        1.9       1.1       5.2         2.4        4.3        -0.8        2.3
         III      r2.8        3.2      r0.4       5.9        r3.4        3.0        r0.1        1.8
          IV       2.7        2.6      -0.1       3.8        -0.2        1.1         4.0        2.2

      ANNUAL       1.6        2.3       0.7       4.8         1.9        3.1         0.8        2.2

---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       February 6, 2008
r=revised                                                              Source: Bureau of Labor Statistics





Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
                                                           Real
   Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
   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

2005       I     133.4      157.4     118.0     160.3       119.5      120.2       129.6      123.6
          II     133.5      158.6     118.8     160.9       118.8      120.5       131.3      124.5
         III     135.0      160.8     119.1     163.2       118.8      120.9       133.7      125.6
          IV     134.5      161.2     119.8     164.2       118.6      122.1       134.8      126.8

      ANNUAL     134.1      159.5     118.9     162.1       118.9      120.9       132.4      125.1

2006       I     135.3      163.4     120.8     167.1       120.1      123.5       135.0      127.7
          II     135.6      164.4     121.2     167.0       118.6      123.2       138.7      128.9
         III     135.0      164.7     122.0     167.5       118.0      124.0       138.6      129.4
          IV     135.6      165.7     122.2     172.4       122.1      127.1       133.6      129.5

      ANNUAL     135.4      164.5     121.5     168.5      r119.7      124.5       136.5      128.9

2007       I     135.9      165.9     122.1     174.9       122.7      128.7       133.9      130.6
          II     136.6      167.6     122.7     175.4       121.2      128.4       136.3      131.3
         III    r138.6     r169.9    r122.6    r177.1      r121.9     r127.8      r137.5     r131.3
          IV     139.2      170.1     122.2     178.8       121.8      128.4       137.8      131.9

      ANNUAL     137.6      168.4     122.4     176.5       121.9      128.3       136.4      131.3

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

2005       I       3.7        3.9       0.2       3.6         1.6       -0.1        10.4        3.8
          II       0.3        3.2       2.9       1.5        -2.4        1.2         5.1        2.7
         III       4.4        5.6       1.1       5.7         0.2        1.3         7.8        3.8
          IV      -1.4        0.9       2.4       2.6        -0.8        4.1         3.2        3.7

      ANNUAL       1.9        3.6       1.6       4.0         0.7        2.0         5.5        3.4

2006       I       2.5        5.7       3.1       7.2         5.1        4.6         0.5        3.0
          II       0.8        2.4       1.6      -0.2        -5.0       -1.0        11.5        3.7
         III      -1.6        0.8       2.4       1.3        -1.8        2.9        -0.4        1.6
          IV       1.8        2.6       0.8      12.2        14.6       10.3       -13.6        0.3

      ANNUAL       1.0        3.2       2.2       3.9         0.6        2.9         3.1        3.0

2007       I       0.7        0.3      -0.3       5.9         2.0        5.2         1.0        3.6
          II       2.2        4.2       2.0       1.0        -4.7       -1.1         7.4        2.1
         III      r6.0       r5.6     r-0.3      r4.0        r2.0      r-1.9        r3.4       r0.1
          IV       1.8        0.4      -1.5       3.9        -0.3        2.1         1.0        1.6

      ANNUAL       1.6        2.3       0.7       4.8         1.8        3.1         0.0        1.9

---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2005       I       2.5        3.8       1.4       4.9         1.8        2.3         4.8        3.3
          II       1.4        3.4       2.0       3.9         0.9        2.5         4.3        3.2
         III       2.2        3.8       1.5       4.0         0.3        1.7         6.4        3.5
          IV       1.7        3.4       1.7       3.3        -0.4        1.6         6.6        3.5

      ANNUAL       1.9        3.6       1.6       4.0         0.7        2.0         5.5        3.4

2006       I       1.4        3.8       2.4       4.2         0.5        2.8         4.1        3.3
          II       1.5        3.6       2.0       3.8        -0.2        2.2         5.7        3.5
         III       0.1        2.4       2.4       2.7        -0.7        2.6         3.6        3.0
          IV       0.9        2.8       2.0       5.0         3.0        4.1        -0.9        2.2

      ANNUAL       1.0        3.2       2.2       3.9         0.6        2.9         3.1        3.0

2007       I       0.4        1.5       1.1       4.7         2.2        4.3        -0.8        2.3
          II       0.7        2.0       1.2       5.0         2.3        4.2        -1.7        1.9
         III      r2.6        3.2       0.5      r5.7         3.3        3.0       r-0.8        1.5
          IV       2.6        2.6       0.0       3.7        -0.3        1.0         3.2        1.8

      ANNUAL       1.6        2.3       0.7       4.8         1.8        3.1         0.0        1.9

---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       February 6, 2008
r=revised                                                              Source: Bureau of Labor Statistics





Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2005       I            168.3        142.7         84.8        166.2          123.9          98.7
          II            170.9        143.8         84.1        167.8          123.9          98.2
         III            172.4        144.5         83.8        170.2          124.0          98.7
          IV            173.7        147.3         84.8        168.8          121.9          97.2

      ANNUAL            171.3        144.6         84.4        168.3          123.4          98.2

2006       I            175.4        149.5         85.2        172.6          124.1          98.4
          II            177.0        151.6         85.6        170.1          120.8          96.1
         III            179.8        153.4         85.3        170.7          120.2          94.9
          IV            180.7        152.6         84.4        176.4          125.0          97.6

      ANNUAL            178.2        151.7         85.1        172.4         r122.5          96.8

2007       I            181.5        152.9         84.3        180.2          126.4          99.3
          II            182.6        154.6         84.7        179.6          124.2          98.4
         III           r184.4       r156.1        r84.7       r180.1         r123.9         r97.7
          IV            185.5        155.3         83.7        181.9          123.9          98.1

      ANNUAL            183.5        154.7         84.3        180.4          124.6          98.3

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

2005       I              4.9          4.6         -0.3          1.0           -0.9          -3.7
          II              6.3          3.1         -3.0          4.0            0.0          -2.2
         III              3.5          2.1         -1.4          5.6            0.1           2.1
          IV              3.1          7.9          4.6         -3.1           -6.4          -6.0

      ANNUAL              4.8          3.5         -1.2          4.2            0.8          -0.6

2006       I              4.0          6.0          1.9          9.4            7.2           5.1
          II              3.7          5.7          2.0         -5.8          -10.2          -9.1
         III              6.5          4.8         -1.6          1.4           -1.8          -4.8
          IV              2.0         -2.1         -4.0         14.2           16.6          12.0

      ANNUAL              4.0          4.9          0.9          2.5           -0.8          -1.5

2007       I              1.7          0.9         -0.8          8.9            4.8           7.0
          II              2.4          4.4          2.0         -1.4           -6.9          -3.7
         III             r4.0         r3.9        r-0.1         r1.0          r-0.8         r-2.9
          IV              2.5         -1.9         -4.3          4.2           -0.1           1.7

      ANNUAL              2.9          2.0         -1.0          4.6            1.7           1.6

--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I              4.4          3.1         -1.2          6.0            2.9           1.5
          II              5.1          3.4         -1.6          5.0            2.1           0.0
         III              5.2          3.3         -1.9          4.0            0.3          -1.1
          IV              4.4          4.4          0.0          1.8           -1.8          -2.5

      ANNUAL              4.8          3.5         -1.2          4.2            0.8          -0.6

2006       I              4.2          4.7          0.5          3.9            0.1          -0.3
          II              3.6          5.4          1.8          1.3           -2.5          -2.1
         III              4.3          6.1          1.7          0.3           -3.0          -3.8
          IV              4.0          3.6         -0.5          4.5            2.5           0.5

      ANNUAL              4.0          4.9          0.9          2.5           -0.8          -1.5

2007       I              3.5          2.3         -1.1          4.4            1.9           0.9
          II              3.1          2.0         -1.1          5.6            2.8           2.4
         III             r2.5         r1.8        r-0.7         r5.5           r3.1          r2.9
          IV              2.6          1.8         -0.8          3.1           -0.9           0.5

      ANNUAL              2.9          2.0         -1.0          4.6            1.7           1.6

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 6, 2008
r=revised                                                       Source: Bureau of Labor Statistics





Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2005       I            189.8        169.7         89.4        161.4          120.3          85.0
          II            193.4        171.6         88.8        162.5          120.0          84.0
         III            196.5        174.5         88.8        165.2          120.4          84.1
          IV            200.7        180.5         89.9        163.6          118.2          81.5

      ANNUAL            195.1        174.1         89.2        163.2          119.7          83.6

2006       I            202.7        182.9         90.3        168.4          121.0          83.1
          II            205.5        187.1         91.1        165.7          117.7          80.7
         III            210.1        189.6         90.3        166.4          117.3          79.2
          IV            211.5        188.9         89.3        173.0          122.5          81.8

      ANNUAL            207.4        187.2         90.2        168.4         r119.6          81.2

2007       I            212.3        188.7         88.9        176.5          123.8          83.1
          II            215.1        192.1         89.3        175.9          121.6          81.8
         III           r217.8       r195.0        r89.5       r176.0         r121.1         r80.8
          IV            220.3        194.3         88.2        178.3          121.4          80.9

      ANNUAL            216.4        192.5         89.0        176.7          122.0          81.7

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

2005       I              4.1          5.5          1.3          0.4           -1.5          -3.6
          II              7.7          4.7         -2.8          2.7           -1.2          -4.7
         III              6.6          6.8          0.2          7.0            1.4           0.4
          IV              8.9         14.5          5.2         -3.8           -7.0         -11.7

      ANNUAL              5.3          5.0         -0.3          3.8            0.5          -1.4

2006       I              3.9          5.5          1.5         12.1            9.9           7.9
          II              5.7          9.4          3.5         -6.1          -10.5         -11.2
         III              9.3          5.5         -3.5          1.7           -1.5          -6.9
          IV              2.7         -1.4         -4.1         16.6           19.1          13.5

      ANNUAL              6.3          7.5          1.1          3.2           -0.1          -2.9

2007       I              1.6         -0.5         -2.0          8.5            4.5           6.9
          II              5.2          7.3          2.0         -1.4           -6.9          -6.2
         III             r5.2         r6.3         r1.0         r0.2          r-1.7         r-4.8
          IV              4.6         -1.5         -5.9          5.2            0.9           0.6

      ANNUAL              4.3          2.9         -1.4          4.9            2.0           0.6

--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I              3.3          3.0         -0.3          6.0            2.9           2.6
          II              4.8          4.0         -0.8          4.4            1.5          -0.4
         III              6.2          5.1         -1.0          3.5           -0.2          -2.5
          IV              6.8          7.8          0.9          1.5           -2.1          -5.0

      ANNUAL              5.3          5.0         -0.3          3.8            0.5          -1.4

2006       I              6.8          7.8          1.0          4.3            0.6          -2.3
          II              6.3          9.0          2.6          2.0           -1.9          -4.0
         III              6.9          8.7          1.6          0.7           -2.6          -5.8
          IV              5.4          4.7         -0.7          5.7            3.6           0.3

      ANNUAL              6.3          7.5          1.1          3.2           -0.1          -2.9

2007       I              4.8          3.2         -1.5          4.9            2.3           0.1
          II              4.6          2.6         -1.9          6.1            3.4           1.4
         III             r3.7         r2.8        r-0.8         r5.8           r3.3          r2.0
          IV              4.1          2.8         -1.3          3.1           -0.9          -1.0

      ANNUAL              4.3          2.9         -1.4          4.9            2.0           0.6

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 6, 2008
r=revised                                                       Source: Bureau of Labor Statistics





Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2005       I            147.3        114.7         77.8        173.3          129.2         117.6
          II            149.1        115.1         77.2        176.1          130.0         118.1
         III            149.5        114.2         76.4        177.3          129.2         118.6
          IV            148.4        114.4         77.1        176.5          127.5         118.9

      ANNUAL            148.6        114.6         77.1        175.8          129.0         118.3

2006       I            149.8        116.3         77.6        178.3          128.2         119.0
          II            150.7        116.8         77.5        175.9          124.9         116.7
         III            151.6        117.9         77.8        176.4          124.3         116.4
          IV            152.0        117.1         77.0        180.5          127.9         118.8

      ANNUAL            151.0        117.0         77.5        177.8         r126.3         117.7

2007       I            152.4        117.8         77.3        184.8          129.7         121.2
          II            152.1        118.2         77.7        184.1          127.3         121.1
         III           r153.3       r118.6        r77.3       r185.3         r127.5        r120.8
          IV            153.0        117.8         77.0        186.4          127.0         121.9

      ANNUAL            152.7        118.1         77.3        185.2          127.8         121.2

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

2005       I              6.4          3.3         -2.9          1.8           -0.2          -4.3
          II              4.9          1.3         -3.4          6.5            2.5           1.6
         III              1.0         -3.0         -4.0          2.8           -2.6           1.7
          IV             -2.9          0.8          3.8         -1.9           -5.2           1.0

      ANNUAL              4.8          1.9         -2.7          4.8            1.4           0.0

2006       I              3.9          6.6          2.7          4.3            2.3           0.4
          II              2.4          1.7         -0.7         -5.4           -9.9          -7.6
         III              2.4          4.1          1.7          1.2           -2.0          -1.2
          IV              1.0         -2.9         -3.9          9.7           12.0           8.6

      ANNUAL              1.6          2.1          0.5          1.1           -2.1          -0.5

2007       I              1.2          2.6          1.4          9.8            5.7           8.5
          II             -0.8          1.2          2.1         -1.5           -7.0          -0.6
         III             r3.3         r1.3        r-1.9         r2.5           r0.6         r-0.8
          IV             -0.9         -2.4         -1.5          2.6           -1.6           3.5

      ANNUAL              1.1          0.9         -0.2          4.1            1.2           3.0

--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I              6.3          3.3         -2.8          5.9            2.8          -0.4
          II              5.8          2.5         -3.1          6.1            3.0           0.2
         III              4.7          1.2         -3.3          4.9            1.1           0.1
          IV              2.3          0.6         -1.7          2.3           -1.4           0.0

      ANNUAL              4.8          1.9         -2.7          4.8            1.4           0.0

2006       I              1.7          1.4         -0.3          2.9           -0.8           1.2
          II              1.1          1.5          0.4         -0.1           -3.9          -1.2
         III              1.4          3.3          1.8         -0.5           -3.8          -1.9
          IV              2.4          2.3         -0.1          2.3            0.3          -0.1

      ANNUAL              1.6          2.1          0.5          1.1           -2.1          -0.5

2007       I              1.7          1.3         -0.4          3.6            1.2           1.9
          II              0.9          1.2          0.3          4.7            1.9           3.7
         III             r1.1         r0.5        r-0.6         r5.0           r2.6          r3.8
          IV              0.7          0.7          0.0          3.3           -0.7           2.6

      ANNUAL              1.1          0.9         -0.2          4.1            1.2           3.0

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 6, 2008
r=revised                                                       Source: Bureau of Labor Statistics





Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted

              Output                      Hourly    Real                Unit     Total    Unit   Implicit
    Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
    and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
    quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2005       I    140.3    164.6     117.3    158.0     117.8     112.6    111.5    112.3    151.9    115.9
          II    141.1    166.8     118.2    158.5     117.0     112.3    111.7    112.1    161.7    116.6
         III    140.5    166.9     118.8    160.8     117.1     114.4    115.1    114.6    147.5    117.6
          IV    141.4    169.2     119.7    161.8     116.9     114.5    112.8    114.0    159.5    118.1

      ANNUAL    140.8    166.9     118.5    159.8     117.2     113.5    112.8    113.3    155.2    117.0

2006       I    142.4    171.5     120.4    163.8     117.8     115.0    112.5    114.4    164.4    118.8
          II    141.8    171.5     120.9    163.9     116.4     115.6    114.3    115.2    164.8    119.7
         III    142.9    173.6     121.5    164.6     115.9     115.2    113.8    114.8    172.6    120.0
          IV    143.3    174.6     121.8    169.3     119.9     118.1    114.5    117.1    150.0    120.1

      ANNUAL    142.6    172.8     121.2    165.4    r117.5     116.0    113.8    115.4    162.9    119.6

2007       I    143.6    175.0     121.9    171.2     120.1     119.2    114.6    118.0    154.3    121.2
          II    144.3    176.3     122.1    172.1     119.0     119.3    114.8    118.0    158.2    121.6
         III   r145.6   r178.3    r122.4   r173.9    r119.7    r119.4   r114.2   r118.0   r153.6   r121.2
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2005       I      0.3      0.3       0.1      2.7       0.7       2.4      6.8      3.6      9.8      4.3
          II      2.2      5.4       3.1      1.2      -2.6      -1.0      0.5     -0.6     28.4      2.5
         III     -1.6      0.4       2.0      6.1       0.5       7.8     12.7      9.1    -30.8      3.4
          IV      2.4      5.6       3.1      2.4      -1.0       0.0     -7.6     -2.1     36.9      1.8

      ANNUAL      1.1      2.7       1.6      3.8       0.5       2.7      3.0      2.8      7.0      3.3

2006       I      3.1      5.5       2.3      5.2       3.2       2.0     -1.0      1.2     12.7      2.6
          II     -1.8     -0.1       1.7      0.2      -4.6       2.0      6.4      3.1      1.2      2.9
         III      3.1      5.0       1.9      1.6      -1.5      -1.4     -1.5     -1.5     20.1      1.0
          IV      1.3      2.4       1.2     11.9      14.3      10.5      2.2      8.3    -42.9      0.3

      ANNUAL      1.3      3.5       2.2      3.5       0.2       2.2      0.9      1.9      5.0      2.2

2007       I      0.7      0.9       0.2      4.5       0.6       3.8      0.5      2.9     11.8      3.9
          II      2.1      2.9       0.8      2.3      -3.5       0.2      0.5      0.3     10.4      1.4
         III     r3.7     r4.6      r0.8     r4.1      r2.2      r0.4    r-2.0     -0.3   r-11.0    r-1.6
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2005       I      2.2      3.3       1.1      4.8       1.7       2.5      1.8      2.3     12.4      3.4
          II      1.6      3.3       1.7      3.7       0.7       2.1      2.1      2.1     10.9      3.1
         III     -0.1      1.5       1.7      3.8       0.1       4.0      5.4      4.3     -2.1      3.6
          IV      0.8      2.9       2.1      3.1      -0.6       2.3      2.8      2.4      7.5      3.0

      ANNUAL      1.1      2.7       1.6      3.8       0.5       2.7      3.0      2.8      7.0      3.3

2006       I      1.5      4.2       2.6      3.7       0.0       2.2      0.9      1.8      8.2      2.6
          II      0.5      2.8       2.3      3.4      -0.5       2.9      2.3      2.8      1.9      2.7
         III      1.7      4.0       2.3      2.3      -1.0       0.6     -1.1      0.2     17.0      2.1
          IV      1.4      3.2       1.8      4.6       2.6       3.2      1.5      2.7     -5.9      1.7

      ANNUAL      1.3      3.5       2.2      3.5       0.2       2.2      0.9      1.9      5.0      2.2

2007       I      0.8      2.1       1.3      4.5       2.0       3.6      1.8      3.2     -6.1      2.0
          II      1.8      2.8       1.0      5.0       2.2       3.2      0.4      2.4     -4.1      1.6
         III     r1.9      2.7       0.7     r5.6      r3.2       3.6      0.3      2.7   r-11.0      1.0
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        February 6, 2008
r=revised                                                               Source: Bureau of Labor Statistics




SOURCES:  Output data are from the Bureau of Economic Analysis and the Census 
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, 
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and 
hours data are from the Bureau of Labor Statistics and the Bureau of Economic 
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between 
-1.5 and +1.4 index points approximately 95 percent of the time.  This 
interval is based on the performance of this measure between the fourth 
quarter of 1995 and the third quarter of 2007.

	

			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 self-
employed.

(2)  The change for recent quarters is based on the Consumer Price Index for 
all urban consumers (CPI-U).  The trend from 1978-2006 is based on the 
Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, consumption of fixed capital, 
taxes on production and imports less subsidies, net interest and 
miscellaneous payments, business current transfer payments, rental 
income of persons, and the current surplus of government enterprises.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate is 
calculated using index numbers to three decimal places.  Indexes 
published in the news release are rounded to one decimal place for 
convenience.  Annual changes:  Percent change is calculated using annual 
average indexes to three decimal places.

(6)  Unit nonlabor costs include consumption of fixed capital, taxes on 
production and imports less subsidies, net interest and miscellaneous 
payments, and business current transfer payments.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits before tax with inventory 
valuation and capital consumption adjustments.

Last Modified Date: February 06, 2008
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