Productivity Upside Surprise +3.6%, ULC.....>

US DATA: Productivity Upside Surprise +3.6%, ULC -0.9%; Claims Unch 230k 

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- Q1 nonfarm productivity +3.6% (high since Q3 2014) vs +2.2% BBG, +1.8% 

MNI, pushing the y/y rate to +2.4% (high since Q3 2010) vs +1.3% in Q4.

- Q1 unit labor costs -0.9% (first drop since Q218) vs +1.5% BBG, +1.8% 

MNI, cutting the y/y rate to +0.1% (low since Q4 2013) vs +1.2% in Q4. 

- Q4 productivity rev down to +1.3% (prev +1.9%), ULC rev +2.5% (+2.0%)

- The strong productivity data could explain some of the hesitant rise 

in wage inflation.

- Initial jobless claims unch at 230k in April 27 week, well above BBG 

expectations for 215k (209k MNI), but seasonal adjustment may still be 

an issue as payback soft readings in March and early-April.

previous quarter.

- The 4-week initial claims avg +6,500 to 212,500, with another gain 

likely next week unless the headline figure declines.

- Claims rose by 6,637 in NY, offsetting a 6,701 drop in Massachusetts.

- Continuing claims +17,000 to 1.671m in April 20 week.