Economic News Release

Productivity and Costs News Release


Transmission of material in this release is embargoed until       USDL 14-2182
8:30 a.m. (EST) Wednesday, December 3, 2014

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




                          PRODUCTIVITY AND COSTS
                       Third Quarter 2014, Revised


Nonfarm business sector labor productivity increased at a 2.3 percent annual 
rate during the third quarter of 2014, the U.S. Bureau of Labor Statistics 
reported today, as output increased 4.9 percent and hours worked increased 
2.5 percent. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) From the third quarter of 2013 to the third quarter 
of 2014, productivity rose 1.0 percent as output and hours worked increased 
3.1 percent and 2.1 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. Measures released today are based on 
more recent source data than were available for the preliminary report.

Unit labor costs in the nonfarm business sector fell 1.0 percent in the third 
quarter of 2014, as a 1.3 percent increase in hourly compensation was smaller 
than the 2.3 percent gain in productivity. Unit labor costs increased 1.2 
percent over the last four quarters. (See tables A and 2.)

BLS calculates 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 2.9 percent in the third quarter 
of 2014, as output increased 4.2 percent and hours worked increased 1.3 
percent. Productivity increased 3.2 percent in the durable goods sector and 
increased 3.5 percent in the nondurable goods sector. (See tables A, 3, 4, 
and 5.) Over the last four quarters, manufacturing productivity increased 2.7 
percent, as output increased 4.4 percent and hours increased 1.6 percent. 
Unit labor costs in manufacturing fell 1.3 percent in the third quarter of 
2014 and decreased 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 third-quarter 2014 measures were announced today for the 
nonfinancial corporate sector. Productivity increased 1.1 percent as output 
and hours rose 4.0 percent and 2.9 percent, respectively. (See tables C and 
6.)

Revised measures

The measures released today are based on more recent source data than were 
available for the preliminary report. Table B presents previous and revised 
productivity and related measures for the business, nonfarm business, and 
manufacturing sectors, for the second and third quarters of 2014.

In the third quarter of 2014, nonfarm business productivity increased 2.3 
percent, rather than 2.0 percent as reported November 6. The revised figure 
reflects an upward revision to output that was partially offset by a small 
upward revision to hours. Unit labor costs were revised down, and decreased 
1.0 percent rather than increasing 0.3 percent, reflecting both the upward 
revision to productivity and a 1.0 percentage point downward revision to 
hourly compensation growth. In the manufacturing sector, productivity 
increased 2.9 percent rather than increasing 3.2 percent as previously 
reported, as the upward revision to hours was larger than a small upward 
revision to output. Unit labor costs decreased 1.3 percent, a larger 
decrease than the preliminary estimate.

In the second quarter of 2014, nonfarm business productivity, output, and 
hours were unrevised. Unit labor costs fell 3.7 percent, rather than 0.5 
percent as previously reported, the result of a large downward revision to 
hourly compensation. In the manufacturing sector, output and productivity 
growth were both revised up by 0.1 percentage point. Unit labor costs 
decreased 5.4 percent, a larger decrease than previously reported, due 
primarily to a downward revision to hourly compensation.  

Second-quarter 2014 measures of productivity and costs were revised for the 
nonfinancial corporate sector. Productivity increased 2.0 percent rather 
than 4.0 percent as reported November 6. (See table C.)

Complete annual and quarterly data series can be found on the Productivity 
and Costs home page: www.bls.gov/lpc/#data.
______________







The preliminary Productivity and Costs news release for fourth-quarter 2014 
is scheduled to be released on Thursday, February 5, 2015 at 8:30 a.m. (EST).


==============================================================================
Calendar year 2015 release dates for Productivity and Costs news releases are 
now available at www.bls.gov/schedule/news_release/prod2.htm. 
==============================================================================






======================================================================================================
Table A. Revised third-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            2.3      1.0     1.8     0.7     2.9     2.7     3.2     3.3     3.5     2.8
Output                  4.9      3.1     4.9     2.9     4.2     4.4     6.3     6.2     2.0     2.4
Hours                   2.5      2.1     3.0     2.2     1.3     1.6     3.0     2.8    -1.5    -0.4
Hourly 
 compensation           1.3      2.2     0.6     2.0     1.6     2.3     0.8     1.4     2.7     3.7
Real hourly
 compensation           0.2      0.4    -0.5     0.2     0.5     0.4    -0.3    -0.4     1.6     1.9
Unit labor
 costs                 -1.0      1.2    -1.2     1.3    -1.3    -0.5    -2.3    -1.9    -0.7     0.9
======================================================================================================
Table B. Revised and previous measures: third quarter and second quarter 2014 

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

Productivity    2.3      2.0      1.8      1.5      2.9      3.2      3.2      4.2      3.5      3.0
Output          4.9      4.4      4.9      4.5      4.2      4.1      6.3      6.6      2.0      1.2
Hours           2.5      2.3      3.0      2.9      1.3      0.8      3.0      2.3     -1.5     -1.8
Hourly
 compensation   1.3      2.3      0.6      1.6      1.6      2.5      0.8      1.8      2.7      3.5
Real hourly
 compensation   0.2      1.2     -0.5      0.5      0.5      1.4     -0.3      0.7      1.6      2.4
Unit labor 
 costs         -1.0      0.3     -1.2      0.0     -1.3     -0.7     -2.3     -2.2     -0.7      0.4
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, second quarter 2014

Productivity    2.9      2.9      2.9      2.9      3.6      3.5      4.0      3.8      4.7      4.6
Output          5.5      5.5      5.7      5.7      7.2      7.1     10.1      9.9      4.0      4.0
Hours           2.5      2.5      2.7      2.7      3.4      3.4      5.9      5.9     -0.6     -0.6
Hourly
 compensation  -0.9      2.3     -1.1      2.1     -1.9      1.6     -3.1      1.0     -0.1      2.4
Real hourly
 compensation  -3.8     -0.7     -4.0     -0.9     -4.8     -1.4     -5.9     -2.0     -3.0     -0.6
Unit labor
 costs         -3.7     -0.5     -3.9     -0.7     -5.4     -1.8     -6.8     -2.7     -4.5     -2.2
======================================================================================================
Table C. Nonfinancial corporations: preliminary third quarter and revised second quarter 2014 

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

Q to Q           1.1       4.0      2.9       0.9         -0.2         -0.3         3.2         0.7
Y to Y           0.5       3.3      2.8       1.6         -0.2          1.1         1.7         0.7
                                        
                                Percent change, annual rate, second quarter 2014
                                        
Q to Q Revised   2.0       6.5      4.5      -1.5         -4.4         -3.4        47.3         1.7
Q to Q Previous  4.0       8.6      4.5       1.8         -1.2         -2.0        44.5         1.7
======================================================================================================





			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, counting a 
person who is employed by two or more establishments at each place of 
employment. 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) for 2001 forward and data from the BLS Hours at Work survey, 
conducted for this purpose, 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 to estimate hours worked for farm labor, 
nonfarm proprietors, and nonfarm unpaid family workers. Using CPS 
information on employment and hours worked at primary jobs and all other 
jobs, separately, the BLS productivity measures assign all hours worked 
to the correct industrial sector. Hours 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.

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 indexes 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. 
     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.
     
Labor Productivity: The measure describes the relationship between real 
output and the labor time involved in its production. Measures of labor 
productivity growth show the changes from period to period in the amount 
of goods and services produced per hour worked. 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: These measures describe the relationship between 
compensation per hour and labor 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).

For a more detailed explanation of methodology see "Technical Information 
About the Major Sector Productivity and Costs Methods" at 
www.bls.gov/lpc/lpcmethods.pdf.
      
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 III       1.8 r       4.9 r      3.0 r      0.6 r     -0.5 r     -1.2 r      4.2 r      1.2 r
     II        2.9         5.7        2.7       -1.1 r     -4.0 r     -3.9 r     11.1 r      2.4  
     I        -5.0        -3.3        1.8        6.9        4.9       12.5      -11.5        1.3  

2013 ANNUAL    1.2         2.7        1.5        1.4       -0.1        0.2        3.1        1.4  

2013 IV        3.1         4.6        1.5        1.7        0.5       -1.4        4.0        1.0  
     III       3.5         5.9        2.4        0.3       -1.7       -3.1        7.9        1.6  
     II        0.7         2.1        1.4        3.8        3.4        3.1       -1.7        1.0  
     I         2.1         3.2        1.1       -5.6       -6.7       -7.6       14.6        1.4  

2012 ANNUAL    0.9         3.1        2.2        2.8        0.7        1.9        1.7        1.8  

2012 IV       -2.0        -0.1        1.9       10.8        8.1       13.0      -12.3        1.3  
     III       1.3         3.1        1.8        0.0       -1.6       -1.3        6.5        2.0  
     II        1.8         2.3        0.4        0.8       -0.5       -1.0        6.5        2.2  
     I        -0.1         3.1        3.3       11.6        9.2       11.7      -10.0        1.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 III       0.7 r       2.9 r      2.2        2.0 r      0.2 r      1.3 r      1.6 r      1.4  
     II        1.1         3.2        2.1        1.9 r     -0.1 r      0.8 r      2.5 r      1.5  
     I         0.5         2.3        1.7        3.1        1.7        2.6       -0.6        1.2  

2013 ANNUAL    1.2         2.7        1.5        1.4       -0.1        0.2        3.1        1.4  

2013 IV        2.4         4.0        1.6        0.0       -1.2       -2.3        6.0        1.2  
     III       1.1         2.8        1.7        2.1        0.6        1.1        1.6        1.3  
     II        0.5         2.1        1.5        2.1        0.6        1.5        1.3        1.4  
     I         0.8         2.1        1.3        1.3       -0.3        0.5        3.3        1.7  

2012 ANNUAL    0.9         3.1        2.2        2.8        0.7        1.9        1.7        1.8  

2012 IV        0.3         2.1        1.8        5.7        3.7        5.4       -2.7        1.8  
     III       1.6         3.6        2.0        1.8        0.1        0.2        3.6        1.7  
     II        1.0         3.1        2.1        2.3        0.4        1.3        2.6        1.8  
     I         0.8         3.5        2.7        1.6       -1.2        0.8        3.8        2.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 III     106.5 r     115.5 r    108.4 r    110.8 r    100.0 r    104.0 r    114.7 r    108.5 r
     II      106.0       114.1      107.6      110.6 r    100.1 r    104.3 r    113.5 r    108.2  
     I       105.3       112.5      106.9      110.9      101.1      105.4      110.6      107.5  

2013 ANNUAL  105.5       111.6      105.7      108.5       99.9      102.8      112.2      106.7  

2013 IV      106.6       113.5      106.4      109.1       99.9      102.3      114.0      107.2  
     III     105.8       112.2      106.0      108.6       99.8      102.7      112.9      106.9  
     II      104.9       110.6      105.4      108.6      100.3      103.5      110.7      106.5  
     I       104.7       110.0      105.1      107.5       99.4      102.7      111.2      106.3  

2012 ANNUAL  104.3       108.6      104.2      107.0       99.9      102.6      108.9      105.2  

2012 IV      104.2       109.1      104.8      109.1      101.2      104.7      107.5      105.9  
     III     104.7       109.2      104.3      106.4       99.2      101.6      111.1      105.6  
     II      104.3       108.3      103.8      106.3       99.6      101.9      109.3      105.0  
     I       103.9       107.7      103.7      106.1       99.8      102.2      107.6      104.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 3, 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 III       2.3 r       4.9 r      2.5 r      1.3 r      0.2 r     -1.0 r      5.4 r      1.8 r
     II        2.9         5.5        2.5       -0.9 r     -3.8 r     -3.7 r     10.1 r      2.0  
     I        -4.5        -2.4        2.1        6.6        4.6       11.6      -11.7        0.8  

2013 ANNUAL    0.9         2.6        1.7        1.1       -0.3        0.2        2.9        1.4  

2013 IV        3.3         4.7        1.4        1.9        0.7       -1.3        5.0        1.4  
     III       3.6         5.6        1.9        0.7       -1.4       -2.9        8.5        1.9  
     II        0.5         2.0        1.5        3.7        3.2        3.2       -0.7        1.5  
     I         0.8         2.4        1.6       -6.3       -7.4       -7.0       12.7        0.9  

2012 ANNUAL    1.0         3.2        2.2        2.7        0.6        1.7        2.0        1.8  

2012 IV       -2.0         0.1        2.2       10.4        7.8       12.7      -12.8        1.0  
     III       1.7         3.7        2.0       -0.2       -1.8       -1.8        6.7        1.8  
     II        1.8         2.3        0.5        0.7       -0.7       -1.2        7.0        2.3  
     I         0.2         3.3        3.2       11.6        9.3       11.4       -9.9        1.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 III       1.0 r       3.1 r      2.1        2.2 r      0.4 r      1.2 r      1.8 r      1.5  
     II        1.3         3.3        2.0        2.0 r      0.0 r      0.7 r      2.6 r      1.5  
     I         0.7         2.4        1.7        3.2        1.8        2.5        0.0        1.4  

2013 ANNUAL    0.9         2.6        1.7        1.1       -0.3        0.2        2.9        1.4  

2013 IV        2.0         3.7        1.6       -0.1       -1.3       -2.1        6.2        1.4  
     III       0.7         2.5        1.8        1.9        0.4        1.2        1.4        1.3  
     II        0.2         2.0        1.8        1.7        0.3        1.5        1.0        1.3  
     I         0.6         2.1        1.5        1.0       -0.7        0.4        2.9        1.5  

2012 ANNUAL    1.0         3.2        2.2        2.7        0.6        1.7        2.0        1.8  

2012 IV        0.4         2.3        1.9        5.5        3.5        5.1       -2.7        1.6  
     III       1.7         3.8        2.0        1.6        0.0       -0.1        4.1        1.7  
     II        1.1         3.1        2.0        2.3        0.4        1.2        2.8        1.9  
     I         0.9         3.7        2.7        1.5       -1.2        0.6        4.0        2.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 III     106.7 r     115.7 r    108.4 r    110.9 r    100.1 r    103.9 r    113.7 r    107.9 r
     II      106.1       114.4      107.8      110.5 r    100.0 r    104.1 r    112.2 r    107.5  
     I       105.4       112.9      107.1      110.7      101.0      105.1      109.5      106.9  

2013 ANNUAL  105.4       111.7      105.9      108.3       99.7      102.7      110.9      106.1  

2013 IV      106.6       113.5      106.5      109.0       99.9      102.3      113.0      106.7  
     III     105.7       112.2      106.2      108.5       99.7      102.6      111.6      106.4  
     II      104.8       110.7      105.7      108.3      100.0      103.4      109.4      105.9  
     I       104.7       110.2      105.3      107.3       99.2      102.5      109.6      105.5  

2012 ANNUAL  104.5       108.9      104.2      107.1      100.0      102.4      107.8      104.7  

2012 IV      104.4       109.5      104.9      109.1      101.1      104.4      106.3      105.2  
     III     105.0       109.5      104.3      106.4       99.3      101.4      110.0      105.0  
     II      104.5       108.5      103.8      106.5       99.7      101.8      108.3      104.5  
     I       104.1       107.9      103.7      106.3       99.9      102.1      106.5      103.9  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 3, 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 III           2.9 r          4.2 r          1.3 r          1.6 r          0.5 r         -1.3 r
     II            3.6 r          7.2 r          3.4           -1.9 r         -4.8 r         -5.4 r
     I             3.2            1.6           -1.6            8.9            6.9            5.5  

2013 ANNUAL        2.0            2.7            0.7            0.6           -0.8           -1.4  

2013 IV            1.3            4.7            3.4            0.8           -0.4           -0.5  
     III           0.5            1.7            1.1            0.6           -1.4            0.0  
     II            3.7            1.5           -2.2            2.9            2.4           -0.9  
     I             3.1            4.8            1.7           -2.3           -3.4           -5.2  

2012 ANNUAL        1.0            3.3            2.3            1.7           -0.3            0.8  

2012 IV            1.9            2.4            0.4            4.3            1.8            2.4  
     III           0.1            1.2            1.1           -2.1           -3.7           -2.1  
     II            1.0            2.4            1.3            0.4           -1.0           -0.7  
     I             2.8            6.1            3.1           10.7            8.4            7.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 III           2.7 r          4.4            1.6 r          2.3 r          0.4 r         -0.5 r
     II            2.2 r          3.8            1.6            2.0 r          0.0 r         -0.1 r
     I             2.2            2.4            0.2            3.2            1.8            1.0  

2013 ANNUAL        2.0            2.7            0.7            0.6           -0.8           -1.4  

2013 IV            2.2            3.2            1.0            0.5           -0.7           -1.7  
     III           2.3            2.6            0.3            1.3           -0.2           -1.0  
     II            2.2            2.4            0.3            0.7           -0.8           -1.5  
     I             1.5            2.7            1.1            0.0           -1.6           -1.4  

2012 ANNUAL        1.0            3.3            2.3            1.7           -0.3            0.8  

2012 IV            1.5            3.0            1.5            3.2            1.3            1.7  
     III           0.6            3.2            2.6            0.9           -0.7            0.4  
     II            1.5            4.0            2.4            1.8           -0.1            0.3  
     I             0.4            3.2            2.8            1.0           -1.7            0.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 III         113.5 r        121.0 r        106.6 r        108.1 r         97.5 r         95.2 r
     II          112.7 r        119.8 r        106.2          107.7 r         97.4 r         95.5 r
     I           111.7          117.7          105.3          108.2           98.6           96.8  

2013 ANNUAL      110.3          115.9          105.1          105.5           97.1           95.6  

2013 IV          110.9          117.2          105.8          105.9           97.0           95.5  
     III         110.5          115.9          104.9          105.7           97.1           95.6  
     II          110.4          115.4          104.6          105.5           97.5           95.6  
     I           109.4          115.0          105.2          104.8           96.9           95.8  

2012 ANNUAL      108.1          112.8          104.4          104.8           97.9           97.0  

2012 IV          108.5          113.6          104.7          105.4           97.7           97.1  
     III         108.0          113.0          104.6          104.3           97.3           96.6  
     II          108.0          112.7          104.3          104.8           98.2           97.1  
     I           107.7          112.0          104.0          104.7           98.5           97.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 3, 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 III           3.2 r          6.3 r          3.0 r          0.8 r         -0.3 r         -2.3 r
     II            4.0 r         10.1 r          5.9           -3.1 r         -5.9 r         -6.8 r
     I             3.5            1.8           -1.6           10.0            7.9            6.3  

2013 ANNUAL        3.1            4.2            1.0            0.1           -1.4           -3.0  

2013 IV            2.6            6.9            4.2           -1.7           -2.9           -4.2  
     III           2.0            3.6            1.6            1.0           -1.0           -0.9  
     II            5.2            2.9           -2.1            2.6            2.1           -2.5  
     I             3.4            6.4            2.9           -3.4           -4.5           -6.5  

2012 ANNUAL        3.0            6.0            2.9            1.3           -0.7           -1.6  

2012 IV            3.3            3.6            0.3            5.1            2.6            1.7  
     III           0.5            1.1            0.6           -3.4           -5.0           -4.0  
     II            3.4            5.3            1.9           -1.0           -2.4           -4.3  
     I             7.0           10.3            3.1           11.9            9.6            4.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 III           3.3 r          6.2 r          2.8 r          1.4 r         -0.4 r         -1.9 r
     II            3.0            5.6 r          2.5            1.4 r         -0.6 r         -1.5 r
     I             3.3            3.8            0.5            2.9            1.5           -0.4  

2013 ANNUAL        3.1            4.2            1.0            0.1           -1.4           -3.0  

2013 IV            3.3            4.9            1.6           -0.4           -1.6           -3.5  
     III           3.5            4.1            0.6            1.3           -0.2           -2.1  
     II            3.1            3.5            0.4            0.1           -1.3           -2.9  
     I             2.6            4.1            1.4           -0.7           -2.4           -3.3  

2012 ANNUAL        3.0            6.0            2.9            1.3           -0.7           -1.6  

2012 IV            3.5            5.1            1.5            3.0            1.0           -0.5  
     III           2.5            5.8            3.2            0.2           -1.5           -2.3  
     II            4.1            7.3            3.2            1.6           -0.3           -2.4  
     I             1.8            5.9            4.0            0.7           -2.1           -1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 III         124.0 r        137.1 r        110.5 r        106.5 r         96.1 r         85.9 r
     II          123.1 r        135.0 r        109.7          106.3 r         96.2 r         86.4 r
     I           121.9          131.8          108.2          107.1           97.7           87.9  

2013 ANNUAL      119.6          128.8          107.7          104.7           96.4           87.5  

2013 IV          120.8          131.2          108.6          104.6           95.8           86.6  
     III         120.1          129.1          107.5          105.1           96.5           87.5  
     II          119.5          127.9          107.1          104.8           96.8           87.7  
     I           118.0          127.0          107.7          104.1           96.3           88.3  

2012 ANNUAL      116.0          123.7          106.6          104.6           97.7           90.2  

2012 IV          117.0          125.1          106.9          105.0           97.4           89.8  
     III         116.1          124.0          106.8          103.7           96.8           89.4  
     II          115.9          123.6          106.6          104.6           98.0           90.3  
     I           114.9          122.0          106.2          104.9           98.6           91.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 3, 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 III           3.5 r          2.0 r         -1.5 r          2.7 r          1.6 r         -0.7 r
     II            4.7 r          4.0           -0.6           -0.1 r         -3.0 r         -4.5 r
     I             2.8            1.4           -1.4            6.8            4.8            3.9  

2013 ANNUAL        1.2            1.3            0.1            1.6            0.2            0.4  

2013 IV            0.3            2.3            2.0            5.7            4.4            5.3  
     III          -0.8           -0.4            0.4           -0.4           -2.4            0.4  
     II            2.2           -0.1           -2.3            3.4            2.9            1.2  
     I             3.4            3.1           -0.3           -0.5           -1.6           -3.8  

2012 ANNUAL        0.0            1.3            1.3            2.4            0.3            2.4  

2012 IV            0.6            1.2            0.7            2.9            0.4            2.3  
     III          -0.2            1.7            1.9            0.8           -0.9            1.0  
     II           -0.5           -0.1            0.4            3.0            1.6            3.5  
     I            -0.5            2.6            3.2            8.3            6.1            8.9  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 III           2.8 r          2.4 r         -0.4 r          3.7 r          1.9 r          0.9 r
     II            1.7            1.8            0.1            2.9 r          0.9 r          1.2 r
     I             1.1            0.8           -0.3            3.8            2.4            2.7  

2013 ANNUAL        1.2            1.3            0.1            1.6            0.2            0.4  

2013 IV            1.3            1.2           -0.1            2.0            0.8            0.7  
     III           1.3            0.9           -0.4            1.3           -0.2            0.0  
     II            1.5            1.5            0.0            1.6            0.2            0.1  
     I             0.8            1.5            0.7            1.5           -0.1            0.7  

2012 ANNUAL        0.0            1.3            1.3            2.4            0.3            2.4  

2012 IV           -0.2            1.4            1.5            3.7            1.8            3.9  
     III          -0.4            1.2            1.5            2.2            0.5            2.6  
     II            0.2            1.3            1.1            2.0            0.1            1.9  
     I             0.4            1.2            0.8            1.5           -1.3            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 III         108.3 r        108.6 r        100.3 r        110.3 r         99.5 r        101.8 r
     II          107.3 r        108.1 r        100.7          109.5 r         99.1 r        102.0 r
     I           106.1          107.0          100.8          109.5           99.9          103.2  

2013 ANNUAL      105.3          106.2          100.9          106.5           98.0          101.1  

2013 IV          105.4          106.6          101.2          107.7           98.7          102.2  
     III         105.3          106.0          100.7          106.3           97.7          100.9  
     II          105.5          106.1          100.6          106.4           98.3          100.8  
     I           105.0          106.2          101.1          105.5           97.5          100.5  

2012 ANNUAL      104.0          104.9          100.8          104.8           97.9          100.7  

2012 IV          104.1          105.4          101.2          105.6           98.0          101.5  
     III         103.9          105.0          101.1          104.9           97.9          100.9  
     II          104.0          104.6          100.6          104.7           98.1          100.7  
     I           104.1          104.6          100.5          103.9           97.7           99.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   December 3, 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 III       1.1       4.0      2.9       0.9      -0.2      -0.3      1.2      0.2      3.2      0.7  
     II        2.0 r     6.5 r    4.5      -1.5 r    -4.4 r    -3.4 r   -6.1 r   -4.3 r   47.3 r    1.7  
     I        -1.1       0.7      1.8       6.5       4.5       7.6      2.3      5.9    -26.9      0.5  

2013 ANNUAL    0.3       2.3      2.0       1.4      -0.1       1.1      0.1      0.8      1.4      0.9  

2013 IV        0.1       2.2      2.1       0.8      -0.4       0.8      0.7      0.7     -3.9      0.0  
     III      -2.0       0.4      2.4      -0.5      -2.5       1.6      2.3      1.8     -2.7      1.1  
     II        2.9       4.5      1.6       2.2       1.7      -0.6     -2.6     -1.3      8.5      0.1  
     I        -1.4       1.6      3.1      -1.8      -2.9      -0.4      2.7      0.6     -1.9      0.2  

2012 ANNUAL    1.9       4.3      2.3       2.9       0.8       0.9     -0.7      0.4      7.9      1.4  

2012 IV        4.0       5.6      1.5       7.9       5.3       3.7     -3.3      1.4      4.5      1.8  
     III      -3.6      -2.2      1.5      -0.2      -1.9       3.6      2.3      3.1     -5.7      1.8  
     II        1.6       2.4      0.8       0.3      -1.1      -1.3     -0.2     -0.9     15.5      1.3  
     I         6.1       9.6      3.3      13.5      11.1       6.9     -2.6      3.6     -1.4      2.9  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2014 III       0.5       3.3      2.8       1.6      -0.2       1.1     -0.5      0.6      1.7      0.7  
     II       -0.3 r     2.4 r    2.7       1.3 r    -0.8 r     1.6 r   -0.3 r    1.0      0.2 r    0.8  
     I        -0.1       1.9      2.0       2.2       0.8       2.3      0.7      1.7     -7.2      0.4  

2013 ANNUAL    0.3       2.3      2.0       1.4      -0.1       1.1      0.1      0.8      1.4      0.9  

2013 IV       -0.1       2.2      2.3       0.2      -1.0       0.3      0.7      0.5     -0.1      0.4  
     III       0.8       3.0      2.1       1.9       0.4       1.0     -0.3      0.6      2.0      0.8  
     II        0.4       2.3      1.9       2.0       0.5       1.5     -0.3      0.9      1.2      1.0  
     I         0.1       1.8      1.7       1.5      -0.2       1.4      0.4      1.0      2.8      1.3  

2012 ANNUAL    1.9       4.3      2.3       2.9       0.8       0.9     -0.7      0.4      7.9      1.4  

2012 IV        2.0       3.8      1.8       5.2       3.2       3.2     -1.0      1.8      2.9      2.0  
     III       1.8       3.8      2.0       2.1       0.5       0.3     -0.7      0.0      4.1      0.5  
     II        2.0       4.4      2.4       2.4       0.5       0.4     -0.5      0.1      8.8      1.3  
     I         2.0       5.3      3.2       1.7      -1.1      -0.4     -0.7     -0.5     17.3      1.7  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2014 III     107.9     119.6    110.8     109.9      99.2     101.8     97.6    100.4    149.4    105.5  
     II      107.6 r   118.4 r  110.0     109.6 r    99.2 r   101.9 r   97.3 r  100.3 r  148.2 r  105.3  
     I       107.1     116.5    108.8     110.1     100.4     102.8     98.8    101.4    134.6    104.9  

2013 ANNUAL  107.5     115.5    107.5     108.1      99.5     100.6     98.0     99.7    146.4    104.6  

2013 IV      107.4     116.3    108.3     108.3      99.3     100.9     98.2    100.0    145.5    104.8  
     III     107.4     115.7    107.8     108.1      99.3     100.7     98.1     99.8    147.0    104.8  
     II      107.9     115.6    107.1     108.2     100.0     100.3     97.5     99.4    148.0    104.5  
     I       107.2     114.3    106.7     107.7      99.5     100.5     98.2     99.7    145.0    104.4  

2012 ANNUAL  107.1     112.9    105.4     106.6      99.6      99.5     97.9     99.0    144.3    103.7  

2012 IV      107.5     113.9    105.9     108.2     100.3     100.6     97.5     99.6    145.7    104.4  
     III     106.5     112.3    105.5     106.1      99.0      99.7     98.3     99.2    144.1    103.9  
     II      107.5     113.0    105.1     106.2      99.5      98.8     97.8     98.4    146.2    103.4  
     I       107.1     112.3    104.9     106.1      99.7      99.1     97.8     98.7    141.1    103.1  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         December 3, 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 second quarter of 2014.

			      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: December 03, 2014
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