US nonfarm labor productivity, a measure of output per hour worked, fell an annualized 0.6% in the first quarter, the Labor Department reports. The weakness represents a headwind for corporate profits. “Despite subdued wage growth, low productivity growth means that companies still face significant labor costs for producing an extra unit of output,” says Blerina Uruci, an economist at Barclays.
The pace of US consumer credit growth slowed in April to a 4.5% seasonally adjusted annual rate over the previous month, the Federal Reserve reports. The increase is well below the 9.6% rise in March.
Retail spending in the US increased 0.6% during the week through June 4 vs. the same period from a year earlier, according to the Redbook Index. The pace eased from a 0.9% gain in the previous update, according to data via TradingEconomics.
Consumer confidence in the US economy was unchanged in May, according to Gallup. The polling firm’s US Economic Confidence Index averaged -14, matching April’s level, which marks a seven-month low. The latest reading is well below the year-ago reading of -7.