Productivity declined 0.9% in the 1^st quarter of 2012.  Consumer credit rose 0.3% to $2.55 trillion in April.  The U.S. trade deficit narrowed 4.9% in April.  The ISM services index edged up 0.2 points to 53.7 in May.  Factory orders declined 0.6% in April.  Initial jobless claims declined 12,000 to a level of 377,000 for the week ended 6/2. 

• Productivity growth for the 1^st quarter was revised downwards to a decline of 0.9%, from a previously reported decline of 0.5%.  Some view the decline in productivity as a potentially positive sign for the labor market (an indication that employers have squeezed all they can out of existing workers and will need to hire more), but a negative sign for income growth.   
• Consumer credit increased by $6.5 billion (0.3%) to $2.55 trillion in April. The increase was about half of what had been expected.  Revolving credit (i.e., credit cards) declined $3.4 billion (0.4%) while non-revolving credit (i.e., auto loans) increased $10.0 billion (0.6%).
• The U.S. trade deficit narrowed $2.5 billion (4.9%) to $50.1 billion in April.
• The ISM services index edged up 0.2 points to 53.7 in May.  The decline in imports (-1.7%) exceeded the decline in exports (0.8%).
• Factory orders disappointed expectations with a 0.6% decline in April.
• Initial jobless claims fell by 12,000 to a level of 377,000 for the week ended June 2^nd.