US labor market resilient; declining profits a red flag for economy

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Some economists say US labor market resilience raises the risk that the Federal Reserve could raise interest rates again in June.

, factory production, and business activity that have suggested the economy regained speed at the start of the second quarter.

They were down 6% on a year-on-year basis, the largest decline since the second quarter of 2020, a sign that companies were struggling to pass on higher costs to customers. In principle, GDP and GDI should be equal, but in practice differ as they are estimated using different and largely independent source data.

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