Core Points - The productivity of American workers declined significantly in the first quarter, with a final value decrease of 1.5%, which is worse than the initial estimate of 0.8% [1] - This marks the first decline since the second quarter of 2022, indicating potential challenges for businesses [1] - Labor costs surged by 6.6% in the first quarter, with a year-over-year increase of 1.9%, surpassing the previously reported 1.3% [1] Economic Impact - Businesses are facing rising costs due to tariffs on imported goods, which may further strain profitability [1] - Economic uncertainty is expected to hinder consumer and business spending, leading to cautious financial guidance from companies in sectors such as airlines, retail, and automotive manufacturing for 2025 [1] - Overall, the decline in productivity and the rise in labor costs could pressure corporate profits moving forward [1]

Group 1 - The European Central Bank's inflation target will remain stable at 2% [1] - Labor costs are gradually slowing down [1] - Economic growth risks are skewed to the downside [1] Group 2 - Trade tensions may reduce economic growth [1] - Most long-term inflation expectations are around 2% [1] - The inflation outlook is more uncertain than in the past [1]