US data review - Nomura

Analysts at Nomura offered a review of the US data overnight.

Key Quotes:

"Nonfarm labor productivity growth was revised up to -0.6% q-o-q ar in Q1 from the preliminary number of -1.0%, in line with expectations. The upward revision was a reflection of the second estimate of Q1 GDP and revisions to the relevant labor data. However, labor productivity growth remained negative in Q1 following a sharper decline in Q4. 

The back-to-back deterioration in labor productivity is a consequence of strong job gains and weak economic growth in those quarters. However, the recent slowdown in nonfarm payrolls which was evident the monthly jobs report for May indicates that the misalignment between job creation and economic growth is diminishing. We will likely see some pick-up in labor productivity growth in the current quarter. 

Consumer credit increased by $13.4bn m-o-m in April, coming back to a trend-like growth following an increase of $28.4bn in the previous month (Consensus: $18.0bn). Both revolving and non-revolving loans outstanding continued to increase, but most of the increase in aggregate consumer credit came from an $11.8bn gain in non-revolving loans. Non-revolving loans, which includes auto and student loans, have been boosted by strong vehicle sales as well as more people pursuing higher education."