The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary productivity data–as measured by output per hour of all persons–for the second quarter of 1997. The preliminary seasonally adjusted annual rates of productivity change in the second quarter were:

0.7 percent in the business sector, and

0.6 percent in the nonfarm business sector.

In both the business and nonfarm business sectors, productivity growth in the second quarter was slower than in the first quarter, as the increases in both output and hours slowed. In the first quarter of 1997, output per hour of all persons (as revised) rose 1.8 percent in the business sector and 1.4 percent in the nonfarm business sector.

In manufacturing, productivity changes in the second quarter were:

3.2 percent in manufacturing,

5.1 percent in durable goods manufacturing, and

0.9 percent in nondurable goods manufacturing.

The second-quarter increase in manufacturing productivity was the result of a 4.4 percent increase in output and a 1.2 percent rise in hours of all persons. Output and hours in manufacturing, which includes about 18 percent of U.S. business- sector employment, tend to vary more from quarter to quarter than data for the more aggregate business and nonfarm business sectors.

Sector			Productivity		Output		Hours

Percent change from previous quarter
Business		0.7			2.4		1.7
Nonfarm business	0.6			2.3		1.7
Manufacturing		3.2			4.4		1.2
 Durable		5.1			7.1		1.9
 Nondurable		0.9			1.1		0.2

Percent change from same quarter a year ago
Business		0.8			3.6		2.8
Nonfarm business	0.7			3.6		2.9
Manufacturing		3.7			4.8		1.0
 Durable		4.1			6.0		1.9
 Nondurable		3.4			3.2		—0.2

						Real		Unit
			Hourly			Hourly		Labor
Sector			Compensation		Compensation	Costs

Percent change from previous quarter
Business		3.0			1.9		2.3
Nonfarm business	3.1			2.0		2.4
Manufacturing		2.7			1.6		—0.4
 Durable		2.3			1.2		—2.7
 Nondurable		3.4			2.3		2.5

Percent change from same quarter a year ago
 Business		3.5			1.1		2.6
 Nonfarm business	3.4			1.0		2.7
 Manufacturing		3.1			0.7		—0.6
 Durable		2.5			0.2		—1.5
 Nondurable3.81.40.3

Revised Measures

Current and previous measures for the first quarter of 1997 for the business, nonfarm business, and manufacturing sectors are compared. In the business and nonfarm business sectors, increases in productivity, output, and hourly compensation are smaller–and increases in unit labor costs are higher–than reported on June 18, based on information then available. In manufacturing, productivity and output increased slightly less than originally reported.

Output measures for the business, nonfarm business, and nonfinancial corporate sectors and compensation measures for all sectors incorporate the revisions of the national income and product accounts produced by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce (BEA 97-23). These revisions extend back to the first quarter of 1993. Output measures for the manufacturing, durable manufacturing, and nondurable manufacturing sectors were revised back to 1949 to incorporate the following: revised 1994 and newly available 1995 shipments data from the Annual Survey of Manufactures published by the Census Bureau; revised inventory data from BEA for 1949-95; and the incorporation of new annual-weighted deflators, for detailed industry outputs, for 1987-95 from BEA.

Revised Measures: Nonfinancial Corporations

Productivity and cost measures for the first quarter for nonfinancial corporations also were revised to incorporate the most recent information from the Bureau of Economic Analysis. The revised data for the first quarter show that productivity, output, hourly compensation, and unit profits grew more slowly than reported on June 18. Growth in unit labor costs and the implicit price deflator were higher than reported in June, based on information then available.

Sector			Productivity		Output		Hours

Percent change from previous quarter
Business
 Previous		2.9			7.0		4.0
 Current		1.8			5.9		4.0
Nonfarm Business
 Previous		2.6			7.0		4.2
 Current		1.4			5.6		4.2
Manufacturing
 Previous		2.8			5.6		2.8
 Current		2.5			5.4		2.8

						Real		Unit
			Hourly			Hourly		Labor
Sector			Compensation		Compensation	Costs

Percent change from previous quarter
Business
 Previous		5.0			2.6		2.1
 Current		4.4			1.9		2.5
Nonfarm Business
 Previous		5.2			2.8		2.5
 Current		4.5			2.1		3.1
Manufacturing
 Previous		4.4			2.0		1.6
 Current		4.4			2.0		1.8

August 12, 1997 U.S. Department of Labor

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