Data today:
May ADP Employment Change 278K (consensus 160K); Prior was revised to 291K from 296K
The key takeaway from this report is that job growth is still strong, but that pay growth is slowing. For job stayers, the pain gain in May was 6.5% versus 6.7% in April.
Weekly Initial Claims 232K (consensus 233K); Prior was revised to 230K from 229K; Weekly Continuing Claims 1.795 mln; Prior was revised to 1.789 mln from 1.794 mln
The key takeaway from the report is that businesses overall remain reluctant to cut staff size in large numbers, leaving the level of initial jobless claims well below what is typically seen in a recession environment.
Q1 Productivity – Rev. -2.1% (consensus -2.7%); Prior -2.7%; Q1 Unit Labor Costs – Rev. 4.2% (Briefing.com consensus 6.3%); Prior 6.3%
The key takeaway from this report is that productivity was weak in the first quarter as the level of output (+0.5%) fell well shy of hours worked (+2.6%).
May IHS Markit Manufacturing PMI – Final 48.4; Prior 48.5
May ISM Manufacturing Index 46.9 (consensus 47.1); Prior 47.1
The key takeaway from the report is that it reflected an ongoing contraction in activity with New Orders and Supplier Deliveries falling, though the Production Index climbed back into expansionary territory, which gives some hope for an improvement in the coming months.
April Construction Spending 1.2% (consensus 0.2%); Prior 0.3%
The key takeaway from the report is that continued weakness in new single family construction was overshadowed by strength in private and public nonresidential spending.