03:28 PM EDT, 08/07/2025 (MT Newswires) -- Nonfarm productivity rose by 2.4% in the preliminary estimate for Q2 after a 1.8% decline in the previous quarter, reflecting a rebound in output partially offset by slower growth in hours worked.

Due to the recovery in nonfarm productivity and a slowdown in compensation growth, unit labor costs rose by only 1.6% in Q2 after a 6.9% jump in the previous quarter.

The New York Fed's inflation expectations survey for July showed a slight increase in the one-year outlook, no change to the three-year outlook and a larger gain to the five-year outlook.

June wholesale inventories were revised down to a 0.1% increase from a 0.2% gain in the advance reading.

At the same time, wholesale sales increased by 0.3%, more than expected, with auto sales down 0.7%, but sales of petroleum up 0.9% as well as increases in other categories.

Combined with already released data for the retail and factory levels of distribution, business inventories are on track for a 0.2% gain, while business sales are tracking up 0.5%. Both will be released on Aug 15, when updated retail inventory and sales estimates will be released.

Consumer credit usage rose by $7.4 billion in June after a $5.1 billion gain in May, with revolving credit use falling further and nonrevolving credit use rising at a slower rate.

Initial jobless claims increased by 7,000 to 226,000 in the week ended Aug. 2, but the four-week moving average fell by 500 to 220,750, a seventh straight decline.

Insured claims rose by 38,000 to 1.974 million in the week ended July 26, the highest level since the week ended Nov. 6, 2021.

Natural gas stocks rose by 7 billion cubic feet to 3.130 trillion cubic feet in the week ended Aug. 1, down 4.2% from a year earlier but 5.9% higher than the seasonal average for the current week over the previous five years.

The Q3 GDPnow estimate from the Atlanta Fed is for a 2.5% gain, unrevised from the previous report on Tuesday. The next update is scheduled for Aug. 15.