Productivity estimates for nonfarm business labor were revised upwards for Q1 from a -1.6% decline to a flat 0.0%. The revision was based on an upward revision of productivity from +1.0% to +1.7%, which had the resulting effect of lowering unit labor costs from +3.0% to +2.2%.. The downward revision in labor costs also pushed real hourly compensation down from -0.8% to -0.9%, bringing Y/Y compensation down to -0.3%.

March’s new factory orders were revised from +0.2% to +1.0%, but orders for April fell to -0.2% in the first decline after 4 months of gains. A -0.8% decline in new durable goods orders led the drop after a +2.4% March increase, with drops in nondefense aircraft (-9.1%), mining/oilfield/gas machinery (-8.3%), and electrical equipment/appliances/components (-2.0%). Orders increased for motor vehicles (+0.6%), computers (+1.6%), and non-durable goods (+0.4%), such as energy and food.

In the first increase in 9 weeks, the EIA reported that domestic crude oil supplies unexpectedly rose by +3.3 million barrels for the week ending June 2nd. Crude oil imports were up +356,000 barrels/day from the previous week, raising imports by +8.8% compared to the same four-week period last year. Motor gasoline product supplied was down -0.7% and prices increased by $0.033 compared to the same period in 2016.