Economic News Release

Productivity and Costs News Release



Transmission of material in this release is embargoed until     USDL 14-0986
8:30 a.m. (EDT) Wednesday, June 4, 2014

Technical information: (202) 691-5606    dprweb@bls.gov   www.bls.gov/lpc
Media contact          (202) 691-5902    PressOffice@bls.gov




                        PRODUCTIVITY AND COSTS
                     First Quarter 2014, Revised
                     
                     
Nonfarm business sector labor productivity decreased at a 3.2 percent annual 
rate during the first quarter of 2014, the U.S. Bureau of Labor Statistics 
reported today, as hours increased 2.2 percent and output decreased 1.1 
percent. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) The decrease in productivity was the largest since 
the first quarter of 2008 (-3.9 percent). From the first quarter of 2013 to 
the first quarter of 2014, productivity increased 1.0 percent as output and 
hours worked rose 2.8 percent and 1.7 percent, respectively. (See table A.) 

Labor productivity, or output per hour, is calculated by dividing an index of 
real output by an index of hours worked of all persons, including employees, 
proprietors, and unpaid family workers.  The measures released today are 
based on more recent source data than were available for the preliminary 
report.

Unit labor costs in nonfarm businesses increased 5.7 percent in the first 
quarter of 2014, due to both the decline in productivity and a 2.3 percent 
increase in hourly compensation. Unit labor costs increased 1.2 percent over 
the last four quarters. (See tables A and 2.) 

BLS defines unit labor costs as the ratio of hourly compensation to labor 
productivity; increases in hourly compensation tend to increase unit labor 
costs and increases in output per hour tend to reduce them.

Manufacturing sector productivity increased 3.8 percent in the first quarter 
of 2014, as output increased 2.2 percent and hours worked decreased 1.6 
percent. Productivity increased 4.1 percent in the durable goods sector and 
increased 3.3 percent in the nondurable goods sector. Over the last four 
quarters, manufacturing productivity increased 2.3 percent, as output 
increased 2.5 percent and hours increased 0.2 percent. Unit labor costs in 
manufacturing decreased 0.4 percent in the first quarter of 2014 and declined 
0.5 percent from the same quarter a year ago. (See tables A and 3.) 

The concepts, sources, and methods used for the manufacturing output series 
differ from those used in the business and nonfarm business output series; 
these output measures are not directly comparable. See Technical Notes for a 
more detailed explanation.

Preliminary first-quarter 2014 measures were announced today for the 
nonfinancial corporate sector. Productivity decreased 3.9 percent in the 
first quarter of 2014 and increased 0.1 percent over the last four quarters. 
(See tables C and 6.) 

Revised measures                

Table B presents previous and revised productivity and related measures 
for the business, nonfarm business, and manufacturing sectors, for the 
first quarter of 2014 and the fourth quarter of 2013. 

In the first quarter of 2014, nonfarm business productivity fell 3.2 
percent, a greater decline than was reported in the preliminary estimate. 
The revised figure reflects a 1.4 percentage point downward revision to 
output and a 0.2 percentage point upward revision to hours. Unit labor costs 
were revised up due to the downward revision to productivity, and grew 5.7 
percent in the first quarter of 2014. In the manufacturing sector, 
productivity growth in the first quarter was revised up to 3.8 percent, due 
to an upward revision to output and a downward revision to hours worked. 
Unit labor costs declined 0.4 percent, rather than increasing 0.1 percent as 
previously reported.
 
In the fourth quarter of 2013, nonfarm business and manufacturing 
productivity were unrevised from the May 7 release. For both sectors, a 
downward revision in hourly compensation accounted for the similar downward 
revision to unit labor costs. 

In the nonfinancial corporate sector, fourth-quarter productivity growth was 
unrevised. (See table C.)
______________  




The preliminary Productivity and Costs news release for second-quarter 2014 
is scheduled to be released on Friday, August 8, 2014 at 8:30 a.m. (EDT).






======================================================================================================
Table A. Revised first-quarter 2014 measures: percent change from previous quarter at annual rate 
         (Q to Q) and from same quarter a year ago (Y to Y)

Sector                    Nonfarm                                        Durable         Nondurable
                          Business         Business      Manufacturing   Manufacturing   Manufacturing
                       Q to Q   Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y
------------------------------------------------------------------------------------------------------
Productivity            -3.2      1.0    -3.5     0.9     3.8     2.3     4.1     3.4     3.3     1.2
Output                  -1.1      2.8    -1.7     2.7     2.2     2.5     2.3     3.9     2.1     1.0
Hours                    2.2      1.7     1.8     1.7    -1.6     0.2    -1.7     0.4    -1.2    -0.3
Hourly 
 compensation            2.3      2.3     2.6     2.2     3.4     1.9     2.5     1.0     5.0     3.4
Real hourly 
 compensation            0.4      0.9     0.7     0.8     1.5     0.4     0.6    -0.4     3.1     2.0
Unit labor costs         5.7      1.2     6.3     1.3    -0.4    -0.5    -1.5    -2.3     1.7     2.1
======================================================================================================
Table B. Revised and previous measures: first quarter 2014 and fourth quarter 2013

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                        Percent change, annual rate, first quarter 2014

Productivity   -3.2     -1.7     -3.5     -1.8      3.8      3.3      4.1      3.6      3.3      2.5
Output         -1.1      0.3     -1.7     -0.2      2.2      1.8      2.3      1.6      2.1      2.0
Hours           2.2      2.0      1.8      1.6     -1.6     -1.4     -1.7     -1.9     -1.2     -0.5
Hourly
 compensation   2.3      2.4      2.6      2.7      3.4      3.3      2.5      3.6      5.0      2.9
Real hourly
 compensation   0.4      0.5      0.7      0.8      1.5      1.4      0.6      1.6      3.1      1.0
Unit labor
 costs          5.7      4.2      6.3      4.7     -0.4      0.1     -1.5     -0.1      1.7      0.4
------------------------------------------------------------------------------------------------------
                        Percent change, annual rate, fourth quarter 2013

Productivity    2.3      2.3      2.1      2.1      1.3      1.3      2.6      2.6      0.3      0.3
Output          3.8      3.8      3.5      3.5      4.7      4.7      6.9      6.9      2.3      2.3
Hours           1.4      1.4      1.5      1.5      3.4      3.4      4.2      4.2      2.0      2.0
Hourly
 compensation   1.7      1.9      1.5      1.7      0.7      1.3     -1.8      1.7      5.4      0.6
Real hourly
 compensation   0.5      0.6      0.3      0.5     -0.5      0.1     -3.0      0.5      4.2     -0.6
Unit labor
 costs         -0.6     -0.4     -0.6     -0.4     -0.6      0.1     -4.3     -0.9      5.1      0.3
======================================================================================================
Table C. Nonfinancial corporations: preliminary first-quarter 2014 and revised fourth-quarter 2013 
         productivity and cost measures

                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------                  
                        Percent change, annual rate, first quarter 2014

Q to Q       -3.9       -2.2       1.8      2.1          0.2           6.3        -27.2         0.3
Y to Y        0.1        2.1       2.0      2.0          0.6           1.9         -4.8         0.6

                        Percent change, annual rate, fourth quarter 2013

Revised       2.1        4.3       2.1      1.7          0.5          -0.4          1.6         0.4
Previous      2.1        4.3       2.1      1.8          0.5          -0.4          1.6         0.4
====================================================================================================== 





			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 a chain-type, current-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 76 percent of the value of GDP in 2013. 
Nonfarm business, which excludes farming, accounted for about 74 
percent of GDP in 2013.
     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 manufacturing; 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 a chain-type, current-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 49 percent of the value 
of GDP in 2013.
     
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: The measure includes accrued wages and salaries, 
supplements, employer contributions to employee benefit plans, and 
taxes. 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 percent changes from the previous quarter 
presented at a compound annual rate, as percent changes from the 
corresponding quarter of the previous year, and as index number 
series where 2009=100. 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, 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
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2014 I        -3.5 r      -1.7 r      1.8 r      2.6 r      0.7 r      6.3 r     -4.7 r      1.3 r

2013 ANNUAL    0.9         2.5        1.5        1.8        0.3        0.8        2.4        1.5  

2013 IV        2.1         3.5        1.5        1.5 r      0.3 r     -0.6 r      2.9 r      0.9  
     III       3.2         5.6        2.3        0.9       -1.1       -2.2        7.8        2.1  
     II        1.9         3.4        1.4        3.9        3.4        1.9       -1.7        0.3  
     I         0.3         1.4        1.1       -4.7       -5.8       -4.9       11.4        1.8  

2012 ANNUAL    1.4         3.6        2.2        2.6        0.5        1.2        2.6        1.8  

2012 IV       -1.6         0.2        1.9       10.4        7.8       12.3      -11.5        1.2  
     III       1.7         3.6        1.8        0.4       -1.3       -1.3        7.5        2.5  
     II        1.2         1.6        0.4        1.8        0.4        0.6        3.9        2.0  
     I         1.5         4.9        3.3        9.0        6.7        7.4       -5.4        1.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 I         0.9 r       2.7 r      1.7        2.2 r      0.8 r      1.3 r      1.0 r      1.2  

2013 ANNUAL    0.9         2.5        1.5        1.8        0.3        0.8        2.4        1.5  

2013 IV        1.9         3.5        1.6        0.4       -0.8       -1.5 r      5.0 r      1.3  
     III       0.9         2.6        1.7        2.5        1.0        1.6        1.1        1.4  
     II        0.6         2.1        1.5        2.4        0.9        1.8        1.0        1.5  
     I         0.4         1.7        1.3        1.8        0.2        1.5        2.4        1.9  

2012 ANNUAL    1.4         3.6        2.2        2.6        0.5        1.2        2.6        1.8  

2012 IV        0.7         2.6        1.9        5.3        3.3        4.6       -1.7        1.8  
     III       2.0         4.1        2.1        1.6        0.0       -0.4        4.4        1.7  
     II        1.5         3.6        2.1        2.1        0.2        0.6        3.3        1.8  
     I         1.5         4.3        2.7        1.4       -1.4       -0.1        4.7        2.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 I       106.1 r     113.4 r    106.9 r    110.5 r    100.7 r    104.1 r    112.3 r    107.5 r

2013 ANNUAL  106.1       112.2      105.7      109.1 r    100.4 r    102.8 r    112.2 r    106.7  

2013 IV      107.1       113.9      106.4      109.7 r    100.5 r    102.5 r    113.7 r    107.2  
     III     106.5       112.9      106.0      109.3      100.5      102.7      112.9      106.9  
     II      105.7       111.4      105.4      109.1      100.8      103.2      110.8      106.4  
     I       105.2       110.5      105.0      108.1       99.9      102.7      111.3      106.3  

2012 ANNUAL  105.1       109.5      104.1      107.2      100.1      102.0      109.6      105.1  

2012 IV      105.1       110.1      104.7      109.4      101.4      104.0      108.3      105.8  
     III     105.5       110.0      104.3      106.7       99.5      101.1      111.7      105.5  
     II      105.1       109.1      103.8      106.6       99.8      101.4      109.7      104.9  
     I       104.8       108.6      103.7      106.1       99.7      101.3      108.6      104.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
                                                          Real
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2014 I        -3.2 r      -1.1 r      2.2 r      2.3 r      0.4 r      5.7 r     -4.4 r      1.2 r

2013 ANNUAL    0.5         2.2        1.7        1.6        0.1        1.1        1.6        1.3  

2013 IV        2.3         3.8        1.4        1.7 r      0.5 r     -0.6 r      4.1 r      1.4  
     III       3.5         5.4        1.9        1.3       -0.7       -2.1        8.5        2.4  
     II        1.8         3.3        1.5        3.8        3.3        2.0       -0.7        0.8  
     I        -1.8        -0.3        1.6       -5.3       -6.4       -3.5        6.8        0.7  

2012 ANNUAL    1.5         3.7        2.2        2.6        0.5        1.2        2.7        1.8  

2012 IV       -1.5         0.7        2.2       10.2        7.5       11.8      -12.1        0.8  
     III       2.1         4.2        2.0        0.3       -1.4       -1.8        7.7        2.2  
     II        1.1         1.6        0.5        1.8        0.4        0.7        4.0        2.1  
     I         1.7         5.0        3.2        9.2        6.9        7.4       -5.6        1.5  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 I         1.0 r       2.8 r      1.7        2.3        0.9        1.2 r      1.7 r      1.4  

2013 ANNUAL    0.5         2.2        1.7        1.6        0.1        1.1        1.6        1.3  

2013 IV        1.4         3.0        1.6        0.3 r     -0.9 r     -1.1 r      4.6 r      1.3  
     III       0.5         2.3        1.8        2.4        0.8        1.9        0.3        1.2  
     II        0.1         1.9        1.8        2.1        0.6        1.9        0.1        1.2  
     I         0.0         1.5        1.6        1.6       -0.1        1.6        1.3        1.5  

2012 ANNUAL    1.5         3.7        2.2        2.6        0.5        1.2        2.7        1.8  

2012 IV        0.8         2.8        2.0        5.3        3.3        4.4       -1.8        1.7  
     III       2.0         4.1        2.1        1.6        0.0       -0.4        4.6        1.7  
     II        1.4         3.5        2.1        2.2        0.3        0.8        3.3        1.9  
     I         1.6         4.3        2.7        1.4       -1.3       -0.1        4.8        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 I       106.0 r     113.5 r    107.1 r    110.5 r    100.7 r    104.2 r    110.6 r    106.9 r

2013 ANNUAL  105.8       112.1      105.9      109.1 r    100.4 r    103.1 r    110.0 r    105.9  

2013 IV      106.8       113.8      106.5      109.8 r    100.6 r    102.8 r    111.9 r    106.6  
     III     106.2       112.8      106.1      109.4      100.5      103.0      110.8      106.2  
     II      105.3       111.3      105.6      109.0      100.7      103.5      108.5      105.6  
     I       104.9       110.4      105.3      108.0       99.9      103.0      108.7      105.4  

2012 ANNUAL  105.3       109.7      104.1      107.4      100.3      102.0      108.3      104.6  

2012 IV      105.4       110.5      104.8      109.5      101.5      103.9      106.9      105.2  
     III     105.8       110.3      104.3      106.9       99.7      101.1      110.4      105.0  
     II      105.2       109.2      103.8      106.8      100.1      101.5      108.4      104.4  
     I       104.9       108.7      103.6      106.3      100.0      101.3      107.3      103.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2014 I             3.8 r          2.2 r         -1.6 r          3.4 r          1.5 r         -0.4 r

2013 ANNUAL        2.3            2.9            0.7            0.9 r         -0.5           -1.3  

2013 IV            1.3            4.7            3.4            0.7 r         -0.5 r         -0.6 r
     III           0.5            1.7            1.1            0.5           -1.5           -0.1  
     II            3.7            1.5           -2.2            2.9            2.4           -0.8  
     I             3.1            4.8            1.7           -0.8           -1.9           -3.7  

2012 ANNUAL        1.9            4.3            2.3            1.9           -0.2            0.0  

2012 IV            2.3            2.7            0.4            4.1            1.5            1.8  
     III           0.8            1.9            1.1           -2.5           -4.1           -3.2  
     II            2.1            3.4            1.3            0.6           -0.8           -1.4  
     I             4.2            7.5            3.1           11.3            8.9            6.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 I             2.3 r          2.5 r          0.2            1.9 r          0.4 r         -0.5 r

2013 ANNUAL        2.3            2.9            0.7            0.9 r         -0.5           -1.3  

2013 IV            2.1            3.2            1.0            0.8 r         -0.4 r         -1.3 r
     III           2.4            2.7            0.3            1.6            0.1           -0.7  
     II            2.5            2.7            0.3            0.9           -0.5           -1.5  
     I             2.0            3.2            1.1            0.3           -1.3           -1.7  

2012 ANNUAL        1.9            4.3            2.3            1.9           -0.2            0.0  

2012 IV            2.3            3.9            1.5            3.2            1.3            0.9  
     III           1.6            4.2            2.6            1.0           -0.7           -0.6  
     II            2.6            5.0            2.4            2.0            0.1           -0.5  
     I             1.2            4.0            2.8            1.3           -1.5            0.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 I           113.5 r        119.6 r        105.3 r        108.0 r         98.4 r         95.1 r

2013 ANNUAL      111.9          117.6          105.1          106.7 r         98.2 r         95.4 r

2013 IV          112.5          118.9          105.8          107.1 r         98.1 r         95.2 r
     III         112.1          117.6          104.9          106.9           98.2           95.3  
     II          112.0          117.1          104.6          106.8           98.6           95.4  
     I           110.9          116.7          105.2          106.0           98.0           95.6  

2012 ANNUAL      109.4          114.2          104.4          105.7           98.8           96.6  

2012 IV          110.1          115.3          104.7          106.2           98.5           96.5  
     III         109.5          114.5          104.6          105.2           98.1           96.0  
     II          109.3          114.0          104.3          105.8           99.1           96.8  
     I           108.7          113.0          104.0          105.7           99.3           97.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2014 I             4.1 r          2.3 r         -1.7 r          2.5 r          0.6 r         -1.5 r

2013 ANNUAL        3.4            4.4            1.0            0.4 r         -1.0 r         -2.9 r

2013 IV            2.6            6.9            4.2           -1.8 r         -3.0 r         -4.3 r
     III           2.0            3.6            1.6            0.9           -1.1           -1.0  
     II            5.2            2.9           -2.1            2.5            2.0           -2.6  
     I             3.4            6.4            2.9           -1.5           -2.6           -4.7  

2012 ANNUAL        4.1            7.2            2.9            1.5           -0.6           -2.5  

2012 IV            3.7            4.1            0.3            4.3            1.8            0.6  
     III           1.4            2.0            0.6           -3.4           -4.9           -4.7  
     II            4.7            6.7            1.9           -1.2           -2.5           -5.7  
     I             8.8           12.2            3.1           12.8           10.5            3.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 I             3.4 r          3.9 r          0.4            1.0 r         -0.4 r         -2.3 r

2013 ANNUAL        3.4            4.4            1.0            0.4 r         -1.0 r         -2.9 r

2013 IV            3.3            4.9            1.6            0.0 r         -1.2 r         -3.1 r
     III           3.6            4.2            0.6            1.5            0.0           -1.9  
     II            3.4            3.8            0.4            0.4           -1.0           -2.9  
     I             3.3            4.8            1.4           -0.5           -2.1           -3.6  

2012 ANNUAL        4.1            7.2            2.9            1.5           -0.6           -2.5  

2012 IV            4.6            6.2            1.5            3.0            1.0           -1.6  
     III           3.8            7.1            3.2            0.3           -1.3           -3.3  
     II            5.3            8.7            3.2            1.8           -0.1           -3.3  
     I             2.8            6.9            4.0            1.0           -1.8           -1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 I           124.0 r        134.1 r        108.1 r        106.0 r         96.6 r         85.4 r

2013 ANNUAL      121.6 r        130.9 r        107.7          105.4 r         97.1 r         86.7 r

2013 IV          122.8 r        133.4 r        108.6          105.3 r         96.5 r         85.8 r
     III         122.0          131.2          107.5          105.8           97.2           86.7  
     II          121.4          130.0          107.1          105.6           97.5           86.9  
     I           119.9          129.1          107.7          104.9           97.0           87.5  

2012 ANNUAL      117.6          125.4          106.6          105.0           98.1           89.3  

2012 IV          118.9          127.1          106.9          105.3           97.7           88.6  
     III         117.8          125.9          106.8          104.2           97.2           88.4  
     II          117.4          125.2          106.6          105.1           98.5           89.5  
     I           116.1          123.2          106.2          105.4           99.1           90.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2014 I             3.3 r          2.1 r         -1.2 r          5.0 r          3.1 r          1.7 r

2013 ANNUAL        1.2            1.3            0.1            1.9 r          0.4 r          0.6 r

2013 IV            0.3            2.3            2.0            5.4 r          4.2 r          5.1 r
     III          -0.8           -0.4            0.4           -0.5           -2.5            0.4  
     II            2.2           -0.1           -2.3            3.7            3.2            1.4  
     I             3.4            3.1           -0.3            0.4           -0.8           -2.9  

2012 ANNUAL        0.0            1.2            1.3            2.4            0.3            2.4  

2012 IV            0.6            1.2            0.7            3.6            1.1            3.0  
     III          -0.2            1.7            1.9           -0.8           -2.4           -0.5  
     II           -0.6           -0.2            0.4            3.9            2.5            4.6  
     I            -0.6            2.6            3.2            8.3            6.0            9.0  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 I             1.2 r          1.0 r         -0.3 r          3.4 r          2.0 r          2.1 r

2013 ANNUAL        1.2            1.3            0.1            1.9 r          0.4 r          0.6 r

2013 IV            1.3 r          1.2           -0.1            2.2 r          1.0 r          1.0 r
     III           1.3            0.9           -0.4            1.8            0.2            0.4  
     II            1.5            1.5            0.0            1.7            0.2            0.2  
     I             0.8            1.4            0.7            1.8            0.1            1.0  

2012 ANNUAL        0.0            1.2            1.3            2.4            0.3            2.4  

2012 IV           -0.2            1.3            1.5            3.7            1.8            3.9  
     III          -0.4            1.1            1.5            2.1            0.4            2.5  
     II            0.2            1.3            1.1            2.3            0.3            2.1  
     I             0.5            1.3            0.8            1.6           -1.2            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 I           106.4 r        107.4 r        100.9 r        111.2 r        101.4 r        104.4 r

2013 ANNUAL      105.5 r        106.4 r        100.9          108.5 r         99.9 r        102.9 r

2013 IV          105.6 r        106.8 r        101.2          109.8 r        100.6 r        104.0 r
     III         105.5          106.2          100.7          108.4           99.6          102.7  
     II          105.7          106.3          100.6          108.5          100.2          102.6  
     I           105.1          106.3          101.1          107.5           99.4          102.3  

2012 ANNUAL      104.2          105.1          100.8          106.6           99.6          102.2  

2012 IV          104.3          105.5          101.2          107.4           99.6          103.0  
     III         104.1          105.2          101.1          106.5           99.4          102.3  
     II          104.2          104.8          100.6          106.7          100.0          102.4  
     I           104.3          104.8          100.5          105.7           99.3          101.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                       June 4, 2014
r=revised                                                        Source: Bureau of Labor Statistics





Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
                                                     Real               Unit
              Output                       Hourly    hourly             non-      Total   Unit   Implicit
 Year         per all-                     compen-   compen-   Unit     labor     unit    pro-   price
 and          employee          Employee   sation    sation    labor    costs     cost    fits   deflator
 quarter      hour     Output   hours       (1)       (2)      costs     (6)      (7)     (8)      (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2014 I        -3.9      -2.2      1.8       2.1       0.2       6.3      5.0      5.8    -27.2      0.3  

2013 ANNUAL    0.0       2.1      2.0       0.8      -0.7       0.7      1.2      0.9      3.1      1.2  

2013 IV        2.1       4.3      2.1       1.7 r     0.5      -0.4      1.3      0.2      1.6      0.4  
     III      -0.8       1.6      2.4       0.6      -1.4       1.5      3.3      2.1      2.6      2.1  
     II        3.3       4.9      1.6       3.7       3.2       0.4     -5.6     -1.6      8.0     -0.3  
     I        -4.2      -1.3      3.1      -6.2      -7.3      -2.1      9.1      1.5      0.3      1.3  

2012 ANNUAL    1.4       3.7      2.3       2.8       0.7       1.4      0.2      1.0      3.8      1.4  

2012 IV        4.8       6.4      1.5       7.9       5.3       3.0     -4.2      0.6      9.6      1.8  
     III      -3.4      -2.0      1.5       0.2      -1.5       3.7      3.0      3.5     -7.4      1.8  
     II        0.7       1.6      0.8       1.1      -0.3       0.3      1.1      0.6      5.8      1.3  
     I         5.4       8.9      3.3      11.8       9.4       6.1     -0.6      3.8     -2.2      2.9  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2014 I         0.1       2.1      2.0       2.0       0.6       1.9      0.9      1.6     -4.8      0.6  

2013 ANNUAL    0.0       2.1      2.0       0.8      -0.7       0.7      1.2      0.9      3.1      1.2  

2013 IV        0.0       2.3      2.3      -0.1      -1.3      -0.2      1.9      0.5      3.1      0.9  
     III       0.7       2.9      2.1       1.4      -0.2       0.7      0.5      0.6      5.1      1.2  
     II        0.0       1.9      1.9       1.2      -0.2       1.2      0.4      0.9      2.4      1.2  
     I        -0.6       1.1      1.7       0.6      -1.0       1.2      2.1      1.5      1.9      1.6  

2012 ANNUAL    1.4       3.7      2.3       2.8       0.7       1.4      0.2      1.0      3.8      1.4  

2012 IV        1.8       3.6      1.8       5.1       3.2       3.2     -0.2      2.1      1.2      2.0  
     III       1.2       3.2      2.0       2.1       0.4       0.9      0.5      0.8     -0.9      0.5  
     II        1.1       3.5      2.4       2.3       0.4       1.3      0.6      1.0      2.9      1.3  
     I         1.4       4.7      3.2       1.5      -1.2       0.1     -0.2      0.0     13.1      1.7  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2014 I       106.6     116.0    108.8     108.9      99.3     102.1    100.2    101.5    138.8    105.4  

2013 ANNUAL  107.2 r   115.2 r  107.5     107.6 r    99.1 r   100.4     98.7 r   99.9    148.7 r  105.0 r

2013 IV      107.7 r   116.7 r  108.3     108.3 r    99.2 r   100.6 r   99.0 r  100.0 r  150.3 r  105.3  
     III     107.1     115.4    107.8     107.8      99.1     100.7     98.7    100.0    149.7    105.2  
     II      107.3     115.0    107.1     107.7      99.4     100.3     97.9     99.5    148.7    104.6  
     I       106.5     113.6    106.7     106.7      98.7     100.2     99.3     99.9    145.9    104.7  

2012 ANNUAL  107.1     112.9    105.4     106.8      99.8      99.7     97.5     99.0    144.2    103.7  

2012 IV      107.6     114.0    105.9     108.4     100.6     100.7     97.2     99.5    145.8    104.4  
     III     106.4     112.2    105.5     106.4      99.3     100.0     98.2     99.4    142.5    103.9  
     II      107.3     112.8    105.1     106.4      99.6      99.1     97.5     98.6    145.3    103.4  
     I       107.1     112.4    104.9     106.1      99.7      99.0     97.2     98.4    143.2    103.1  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                             June 4, 2014
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. 
Hours and compensation 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 -1.6 and 1.5 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 fourth quarter of 2013.

			      Table Footnotes
			    
(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 1978-2013 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 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: June 04, 2014
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