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December 2018 Federal Reserve Board's Beige Book
DISCLAIMER: Below are excerpts from the Federal Reserve Board's Beige Book published on December 5, 2018. It "... was prepared at the Federal Reserve Bank of Philadelphia based on information collected on or before November 26, 2018. This document summarizes comments received from contacts outside the Federal Reserve System and is not a commentary on the views of Federal Reserve officials." The excepts were chosen for their relevancy to the recruitment, staffing, employment services, and IT services sectors. The inclusion or exclusion of any sections or wording, the inclusion of each District's service areas (note that sections of some states are divided and end up in more than Fed District), as well as emphasizing certain sections with special typefaces (e.g. bold-faced) was done solely at the discretion of steinbergemploymentresearch.com. The full report can be found at the Federal Reserve Board. The first Beige Book of 2019 is expected to be released on January 16, 2019, at which time we will offer our next summation. If you want to receive notification when it is posted, please fill-in the form above.
First District -- Boston (CT, MA, ME, NH, RI & VT) return to District list First District economic activity in most sectors continued to expand at a moderate pace since the last report. ... Manufacturing firms saw revenues rise from a year ago, but at a somewhat disappointing pace. Most staffing firms reported modest to moderate year-over-year revenue growth, with some signs that the pace of growth slowed recently. ... Labor markets remained tight and wage increases continued at a moderate pace. ... Most contacts continued to report a positive outlook, although some cited increased uncertainty or risks. Employment and Wages Labor markets continued to be tight, although many firms said they are able to hire as needed. Two-thirds of manufacturing contacts expected flat employment at their firm and one-third expected growth. Manufacturers did not report any unusual difficulty finding qualified employees although an industrial distributor said that it had become increasingly difficult to find technical salespeople. Retailers said they have not had problems filling open positions, except for jobs specializing in information technology. Massachusetts restaurants continued to note acute labor shortages and higher labor costs, citing the Commonwealth's recently implemented Employer Medical Assistance Contribution (EMAC) and scheduled hikes in the minimum wage. Staffing industry respondents reported that continued low unemployment made recruiting very challenging. Most staffing firms reported increases in bill and pay rates, ranging from low single-digit increases to 10 percent; one cited high-level IT jobs as a driving factor in increased bill rates. Manufacturing and Related Services All manufacturing contacts this cycle reported higher sales year-on-year. However, two-thirds of the six respondents said the pace of growth was a little disappointing. A furniture maker said sales growth had slowed relative to earlier in the year. Two semiconductor-related firms reported year-over-year sales growth had slowed to 12 percent and 10 percent; one attributed the slower growth to smartphones and the other to slowing demand for consumer devices more broadly. A defense contractor said they were having unusual difficulty with permits to sell to foreign customers. No contacts reported significant revisions to their capital expenditure plans. Contacts were generally optimistic, even the ones with disappointing sales growth. One contact in industrial distribution said that there was industry chatter about a recession in the second half of 2019 but he saw no signs of that. A contact in the semiconductor industry said that people were concerned about the semiconductor industry cycle but continued to expect growth in 2019. Staffing Services New England staffing firms reported mostly positive year-over-year revenue growth, notwithstanding low or negative quarter-over-quarter growth rates. All firms noted labor supply shortages, regardless of the job's industry, occupation, or placement type, while commenting on the high and healthy demand from clients. One company stated that they were hesitant to take on new clients because they could not fulfill orders from existing ones. Most respondents devoted additional resources to improve recruitment: hiring more employees, investing in technology and social media, building relationships with local community groups, and increasing advertising. A few firms noted concerns about potential increases in health care costs and local minimum wages. Overall, staffing firms expressed optimism and expected tight labor market conditions to continue into 2019.
Second District -- New York (CT, NJ & NY) return to District list Economic activity in the Second District has grown modestly in the latest reporting period. The labor market has remained exceptionally tight, and wage growth has remained moderate. Businesses noted continued widespread escalation in input costs but moderate increases in their own selling prices. Prices of final goods and services have generally held steady. Manufacturing and distribution activity continued to grow briskly, while growth in most service industries has been more subdued, though there has been a pickup in the leisure & hospitality industry--particularly tourism. ... Employment and Wages The labor market has remained exceptionally tight across the District. A broad swath of businesses continued to note problems finding qualified workers. Turnover has reportedly increased, and a few contacts cited instances where new hires left for another job soon after or even before their start date. A couple contacts lost existing and prospective skilled workers due to immigration restrictions, including H-1B visas not being renewed. Businesses reported steady to modestly rising employment, on balance. Firms in manufacturing, transportation, and information reported a modest pickup in hiring activity, and most retailers noted a typical seasonal pickup. Contacts in education & health, leisure & hospitality, finance, and wholesale again reported moderate net hiring. A large retail chain hired about the same number of holiday-season workers as in 2017, but the mix shifted a bit from in-store to supporting on-line sales. An upstate New York employment agency noted that clients are increasingly interested in direct hires versus contract workers. Wage pressures remained widespread, though contacts in most industries noted that overall wage growth has been moderate. One contact did note a spike in salaries of college grads in tech fields. A few contacts noted increased use of non-wage benefits to attract and retain staff, such as increased health benefits and profit-sharing. A number of business contacts in New York State, mostly manufacturers, expressed concern about the upcoming minimum wage hike. One contact expressed concern about an upcoming jump in New York's threshold for counting workers as exempt from overtime. Manufacturing and Distribution Manufacturers and wholesale distributors noted ongoing brisk growth in activity in the latest reporting period, while transportation firms indicated steady activity. Looking to the months ahead, manufacturers continued to express fairly widespread optimism, while contacts in the wholesale trade and transportation industries were more guarded in their optimism. A few contacts continued to express concern about tariffs and recent and potential changes in trade policy. Services Growth has remained subdued in the latest reporting period. Contacts in professional & business services noted a pause in growth, while businesses engaged in the education & health, leisure & hospitality, and information industries noted a pickup in growth. In one sign of a pickup in tourism, Broadway theaters reported strong gains in both attendance and revenues, both of which have been running 15-20 percent ahead of this time last year. Looking ahead, contacts in education & health and professional & business services were fairly optimistic about the near-term outlook, while leisure & hospitality firms expect business to be flat.
Third District -- Philadelphia (DE, PA & NJ) return to District list On balance, aggregate business activity in the Third District continued at a modest pace of growth during the current Beige Book period, although the pace appears to have eased somewhat. The labor market has tightened further, which continues to constrain hiring at a modest pace and to apply moderate upward wage pressures. ... The growth outlook over the next six months remained positive, with two-thirds of the nonmanufacturing firms and over 40 percent of the manufacturers anticipating increases in general activity. Employment and Wages The pace of employment growth appears to have slowed somewhat during the current Beige Book period but remained modest overall. The share of nonmanufacturing firms reporting an increase in full-time staff fell by half to less than one-fifth, while the share of manufacturing firms reporting an increase in net employment remained near one-fourth. However, average hours worked appeared to fall for more manufacturing firms, while remaining about the same for nonmanufacturers. Numerous contacts from many sectors noted that jobs were going unfilled for a lack of qualified labor and that employee retention was a growing problem. One staffing firm noted that its roster of qualified job candidates is essentially tapped out – it has become very difficult to find qualified applicants to replenish its candidate pool. On balance, wage growth continued at a moderate pace. Various firm contacts speak of annual wage increases of around 3 percent. In fact, the percentage of the nonmanufacturing contacts who reported increases in wage and benefit costs fell to just over one-third from nearly half in the prior period. However, staffing firms in markets with lower unemployment rates report that their average wage is up as high as 6.5 percent over the prior year. Manufacturing Manufacturing activity eased back to a modest pace of growth – close to its nonrecession average. Likewise, the firms reported a decrease in new orders, while shipments increased relative to the prior period. The makers of chemicals and of primary and fabricated metal products tended to note gains in new orders and shipments; the makers of paper products and of industrial and electronic equipment reported mixed results. Tariffs remained a major concern for many producers. Still, several firms reported that they were adding capacity, while others noted that operating capacity was constrained by shortages of qualified labor. However, a transportation analyst cautioned that new truck orders are at record levels and could be canceled if clear signs of a downturn emerge. On balance, manufacturers continued to expect general activity to increase over the next six months; however, expectations eased a bit – slightly below the nonrecession average. Expectations of future increases in new orders, shipments, and employment remained nearly the same as the prior period and at high levels. Furthermore, expectations of future capital expenditures rose to nearly double the indicator's nonrecession average. Nonfinancial Services On balance, service-sector firms continued to report moderate growth in general activity. However, the percentage of firms reporting increased sales edged back to 50 percent, and the percentage reporting increased new orders dropped to 33 percent. One large service-sector firm noted continued improvement in customer retention and on-time payments. Expectations of future growth broadened slightly, with two-thirds of the firms anticipating increased activity.
Fourth District -- Cleveland (KY, OH, PA & WV) return to District list Business activity in the Fourth District grew modestly during the survey period, with a majority of firms reporting stable customer demand. ... On balance, employers increased staff levels moderately to meet demand, though wage pressures were strong and widespread. Contacts in every industry noted that increased competition for labor was requiring them to boost compensation to retain workers. Nonlabor input costs rose strongly in all industries, led by metals, fuel, and transportation costs. ... Employment and Wages On balance, contacts reported moderate increases to their staff levels. Hiring activity was very strong in professional and business services, in which three-quarters of contacts reported adding workers. Skilled services aside, employers in many sectors gave mixed reports. Retail contacts noted that the increase in temporary employment for the holiday shopping season this year was comparable to holiday season increases in recent years. Many manufacturers increased headcounts to keep up with demand, but there was an uptick in reports of firms' reducing headcounts. ... Wage pressures were widespread. In every industry, contacts noted that increased competition for labor was requiring their firms to boost compensation in a variety of ways to retain workers. A number of manufacturers noted they increased wages between 0.5 percentage points and 1.0 percentage points over the rate of inflation. ... Manufacturing Business conditions in manufacturing remained solid, although producers struggled with capacity constraints and input price increases. Demand was strong, but some contacts indicated that this demand was due to inventory stockpiling as fixed-price contracts approached renewal and as price increases were imminent. Import tariffs have had mixed effects: some manufacturers reported higher demand as import competition subsided, but others reported that tariffs led to input cost increases and supply chain gaps. The competition for skilled labor remained stiff, and two contacts reported off-schedule capital investments in labor-saving technologies to be able to keep up with strong demand without the need for additional personnel. Nonfinancial Services Nonfinancial services firms reported strong growth in business activity. Contacts cited strong business confidence, driven by continued US economic growth, as underpinning their clients' willingness to spend on business advisory services. Contacts were split evenly between those that expected business conditions to improve in the near future and those that expected them to be stable. ...
Fifth District -- Richmond (MD, NC, SC, VA & WV) return to District list The Fifth District economy expanded at a moderate rate, overall. Manufacturers gave mixed reports as some firms reported solid growth while others experienced lower demand and higher raw materials prices due to tariffs and some had lingering negative effects from the recent hurricanes. ... The demand for labor strengthened moderately, and wage increases remained modest across sectors. Price growth remained moderate, overall. ... Employment and Wages Labor demand continued to strengthen moderately in recent weeks. Employment agencies noted an increase in seasonal hiring and expected to post more job openings throughout the holiday season. One staffing agency reported strong demand for all positions and skill levels and stated that 'recruitment is the hardest it has ever been.' Staffing firms saw more companies offering permanent positions to temporary employees. Meanwhile, business owners had difficulty filling positions for IT professionals, accountants, technicians, construction workers, and front-line manufacturing workers. In addition, some firms said that the lack of qualified talent was becoming a constraint on their business. Wage increases remained modest across sectors. Manufacturing Since our last report, Fifth District manufacturers gave mixed reports on demand. Tariffs were a significant concern noted by manufacturers, as they were believed to raise costs of raw materials, thereby raising prices and lowering demand. However, a cabinet manufacturer reported an uptick in business in recent weeks, as customers rushed orders in anticipation of higher tariffs in the new year. Meanwhile, a Virginia food manufacturer reported higher-than-anticipated growth that left the company struggling to meet demand. ... Non-Financial Services Demand for nonfinancial services was little changed in recent weeks. Professional and business services firms gave mixed reports; some said that demand increased while others commented that labor constraints were holding back growth. Enrollments at community colleges fell due to a strong labor market. Meanwhile, accounting and legal services firms experienced moderate growth.
Sixth District -- Atlanta (AL, FL, GA, LA, MS & TN) return to District list Reports from Sixth District business contacts described economic conditions as expanding at a moderate pace since the previous report. The majority of contacts are optimistic and expect the pace to continue for the remainder of the year. The labor market remained tight amid increasing reports of wage pressures. Firms continued to note rising nonlabor costs, and several contacts indicated having the ability to pass along the increases. ... Manufacturers reported robust levels of new orders and production. ... Employment and Wages Broadly, employee retention efforts remained a dominant labor market theme among business contacts. Firms continued to engage in internal programs and marketing initiatives to promote culture, build loyalty, and create a positive environment for workers. Several business contacts, especially those searching for truck drivers, construction laborers, low-skill workers, and information technology professionals, continued to report that labor market tightening impeded their ability to grow. ... Employers encountered some tightening for other positions and business areas, however some contacts expressed a willingness to wait for the right person rather than pay more, since they do not believe that higher pay will guarantee a higher quality worker. Hurricane Michael reduced employment among firms in northwest Florida, and several businesses have not returned to pre-hurricane employment levels. Overall, employers shared that wage increases rose at either the same or an increased pace compared with the previous year, around 3-4 percent on average. A number of contacts mentioned that recent announcements from large national firms to increase starting wages for workers at the lower end of the pay scale have created broad pressures to raise pay for these workers across the region, particularly among hospitality and retail employers. Several contacts pointed out that overall compensation costs were expected to increase at a slightly faster pace in 2019. Manufacturing Manufacturing contacts continued to report solid demand and healthy overall business conditions since the previous reporting period. New orders and production levels remained robust at most firms, with the exception of those along the Gulf Coast that were affected by Hurricane Michael. Supply delivery times were reported to be getting slightly shorter, while input prices continued to rise. Expectations for future production levels increased from the previous period, with almost half of contacts expecting higher production over the next six months.
Seventh District -- Chicago (IA, IL, IN, MI & WI) return to District list Economic activity in the Seventh District grew at a modest pace in October and early November, and contacts expected it to continue at that pace over the next 6 to 12 months. Manufacturing production grew moderately; employment, consumer spending, and business spending increased modestly; and construction and real estate activity decreased slightly. Wages and prices rose modestly and financial conditions were little changed. ... Employment and Wages Employment growth slowed to a modest pace over the reporting period, and contacts expected job gains to continue at that rate over the next 6 to 12 months. Hiring was focused on production, sales, and professional and technical workers, though there was a decline in the number of contacts planning to hire sales workers. As they have for some time, contacts indicated that the labor market was tight and that they had difficulty filling positions at all skill levels. A number of contacts said that they had been "ghosted," a situation in which a worker stops coming to work without notice and then is impossible to contact. Wage growth picked up some but remained modest overall. More contacts reported that they were increasing wages for select employees as opposed to raising wages across the board. Contacts were most likely to report wage increases for managerial, professional and technical, administrative, and production workers. ...Business Spending Business spending increased modestly in October and early November. ... Most manufacturing contacts also reported stocks were at comfortable levels, though some indicated that inventories were too low because of longer lead times for materials. ... Outlays were primarily for replacing industrial and IT equipment and for renovating structures. ... Manufacturing Growth in manufacturing production continued at a moderate rate in October and early November. Steel output rose moderately as end-user demand remained at a high level. Steel imports continued to decline. Demand for heavy machinery increased moderately as well, with growth led by the construction and energy sectors. One contact noted that supply chain constraints were holding back growth. Demand for heavy trucks remained strong. Order books for specialty metals manufacturers increased modestly: Growth was spread across a wide variety of sectors, though contacts noted particularly strong demand from the aerospace sector. Auto production was flat, but remained at a solid level.
Eighth District -- St. Louis (AR, KY, IL, IN, MO, MS & TN) return to District list Economic conditions have slightly improved since our previous report. Firms indicated modest growth in employment and wages. Wage increases were widespread and higher than previous years for the vast majority of firms. ... Overall, the outlook among all contacts continued to weaken but remains slightly optimistic for the upcoming year. On net, a slightly greater share of contacts expect economic conditions in 2019 to be better or somewhat better than 2018. Employment and Wages Employment has grown modestly since the previous reporting period. On net, 22 percent of business contacts surveyed reported that employment was higher or slightly higher than a year ago. Approximately half of the contacts expected their firm to increase employment over the next year, and the remaining contacts expected employment to remain unchanged. Contacts ranked an inability to find candidates with the required skills as the single greatest factor restraining hiring. The labor market was especially tight in the manufacturing, construction, and transportation sectors. One contact reported that manufacturing firms were turning down new orders due to worker shortages. Firms, particularly small businesses, continue to use nonwage benefits to attract employees. Staffing contacts in St. Louis reported that employees seem to have more leverage than employers for the first time in several years. Wages have moderately increased since the previous report. On net, 39 percent of survey respondents indicated that wages were higher or slightly higher than a year ago, and 30 percent reported increases in labor costs. Contacts reported that the tight labor market led to increased pay for both new hires and existing employees: 77 percent of firms reported raising wages and salaries by more than they did in the past few years. Additionally, raises for new hires at national retailers have pushed up starting wages. Small business wages increased modestly in the St. Louis area and moderately in Tennessee. ManufacturingManufacturing activity has increased moderately since our previous report. A large majority of contacts reported that production, new orders, and capacity utilization increased. Several companies reported new capital expenditure and facility expansion plans, including firms that manufacture agricultural chemicals and window coverings. Contacts are also optimistic about the next quarter, with net majorities expecting increases in production, new orders, and capacity utilization. However, one contact in the chemicals sector is reporting that layoffs will take place between this quarter and the first quarter of 2019, and a few manufacturing contacts expressed concern that labor market tightness is contributing to a shortage of qualified employees. Nonfinancial Services Activity in the nonfinancial services sector has improved slightly since the previous report. Across the District, sales expectations were met. Compared with a year ago, 68 percent of survey respondents noted higher sales and 52 percent expect the next quarter also to be higher year over year. ... National logistics firms continue to hire temporary workers due to higher seasonal demand.
Ninth District -- Minneapolis (MI, MN, MT, ND, SD & WI) return to District list Ninth District economic activity increased moderately since the previous report. Employment grew moderately, with hiring demand remaining robust, but a tight labor supply was restraining employment growth. Wage pressures were moderate overall, while price growth remained modest. The District economy showed growth in consumer spending, construction, residential real estate, manufacturing, and energy. ... Employment and Wages Employment grew moderately since the last report. Hiring demand remained robust, but a tight labor supply was restraining employment growth. Job postings tracked by district states were higher overall in October compared with the same period a year earlier. Minnesota and North Dakota saw particularly strong growth in job postings, while South Dakota and the Upper Peninsula of Michigan had small declines. Ad hoc surveys of businesses in Minnesota, Montana, and South Dakota, conducted in late October and November by the Minneapolis Fed, found that a significant majority of respondents' firms were hiring; many were hiring to both increase total headcount and replace turnover. Numerous construction contacts in Minneapolis-St. Paul said they were hiring, and most were looking to increase total headcount. However, tight labor availability was making it difficult for firms to find necessary workers. Surveys by the Minneapolis Fed found that labor availability was widely seen as the biggest obstacle to short-term growth. Unemployment insurance claims have also continued to drop; over the most recent six-week period (through early November), both initial and continuing claims saw a cumulative decline of 12 percent across District states compared with the same period a year earlier. A Montana contact noted that seasonal layoffs for male-dominated industries like construction have been pushed back this year. "This hasn't happened before in the years that we've been watching." Wage pressures were moderate overall, with some evidence of stronger pressures for certain industries and worker skills. Several ad hoc surveys by the Minneapolis Fed showed wage increases coalescing around 3 percent over the past 12 months. A small majority of Minnesota and South Dakota firms reported wage increases below 3 percent; however, a small majority of Montana firms reported increases above 3 percent, as did about 70 percent of Minneapolis-St. Paul construction firms. A Minnesota services company announced it was raising its base wage from $12 to $14 per hour in hopes of hiring 300 people by year's end. A tight labor market for high-tech skills in Minneapolis-St. Paul has led to double-digit wage increases for some information technology and other STEM positions over the past 12 months. There were also reports that more companies, especially those in construction trades, were picking up a greater share of workers' health insurance premium costs to attract and retain employees. ManufacturingDistrict manufacturing activity increased modestly since the previous report. An index of manufacturing conditions indicated increased activity in October compared with a month earlier in Minnesota and the Dakotas. An industrial equipment producer announced a large expansion that would nearly double capacity at a plant in Minnesota. However, multiple contacts have reported putting capital spending plans on hold due to uncertainty in their outlooks.
Tenth District -- Kansas City (CO, NM, MO, NE, OK & WY) return to District list Tenth District economic activity increased slightly in late October and November and remained modestly above year-ago levels. ... Manufacturing activity continued to expand moderately in both durable and non-durable goods plants. ... Employment and employee hours edged up across most industries, and about half of contacts expected to increase employment in the next twelve months due primarily to strong sales growth and overworked staff. Wage growth expanded modestly, and additional gains were expected. ... Employment and Wages Overall employment and employee hours edged up in late October and November across the District, and expectations were for modest gains in the months ahead. ...A majority of respondents continued to note labor shortages for low- and medium-skill workers, including positions for retail sales, commercial drivers, specialized IT, construction, and restaurant staff. Wages grew modestly since the previous survey, and most contacts reported higher starting wages for new hires. Wages were expected to increase at a similar pace moving forward. Manufacturing and Other Business Activity Manufacturing activity continued to expand at a moderate pace, and other business contacts experienced modest-to-moderate sales growth. ... Manufacturers expected modest increases in capital expenditures in the coming months. Outside of manufacturing, firms in the wholesale trade and transportation sectors experienced moderate sales growth, and professional and high-tech firms reported modest sales growth. Transportation contacts expected modest growth in the coming months, whereas wholesale trade and professional and high-tech contacts projected strong growth. Wholesale trade and professional and high-tech firms anticipated capital expenditures to increase.
Eleventh District -- Dallas (LA, NM & TX) return to District list Expansion in the Eleventh District economy slowed to a moderate pace during the reporting period. A broad-based deceleration was seen across the manufacturing and retail sectors and in loan volume growth. ... Employment expanded, despite widespread labor shortages. Wage pressures were strong, and tariffs drove up input costs. Outlooks were less optimistic than the previous report due to increased uncertainty arising from trade disputes, rising interest rates, labor market constraints, and postelection politics. Employment and Wages Widespread job growth continued, despite tight labor markets. Labor shortages remained pervasive across industries and skill sets but were the most severe for mid-skilled positions such as truck drivers and blue-collar workers in manufacturing, construction, and energy. Most companies said they were struggling to find qualified workers, and many noted settling for less-qualified candidates to fill vacancies. Upward wage pressures remained strong and prevalent, although they did ease somewhat in manufacturing. Many firms noted raising wages to recruit and retain workers, and also using non-wage-based incentives such as better benefits, improved working conditions, and bonuses. A staffing firm said it had become difficult to hire for positions paying less than $15 an hour in Dallas–Fort Worth following Amazon's announcement to raise its minimum wage. A manufacturing equipment supplier reported frequently raising wages to prevent its employees from being poached by other firms, and one contact noted high employee turnover despite paying their groundskeepers $20 an hour. Manufacturing Expansion in the manufacturing sector slowed during the reporting period, and outlooks were less optimistic than they have been all year. Output growth softened notably in November, with the tariffs, labor constraints, and trade policy uncertainty cited as damping factors. The slowing was broad based but most pronounced in fabricated metals, construction related products, computer and electronics, and food manufacturing. ... Nonfinancial Services The nonfinancial services sector expanded broadly, with revenue growth firming up among healthcare, information services, and accommodation and food services firms. Demand for staffing services generally remained brisk and broad based, with particular strength noted in orders for healthcare staff, oilfield services labor, and blue-collar workers such as electricians, welders, and plumbers. ...
Twelfth District -- San Francisco (AK, AZ, CA, HI, ID, NV, OR, UT, & WA) return to District list Economic activity in the Twelfth District continued to expand at a moderate pace during the reporting period of early October through mid-November. Conditions in the labor market tightened further, and wage growth was moderate. ... Employment and Wages Conditions in the labor market tightened further. Across the District, contacts reported an increase in competition for workers and a shrinking pool of qualified applicants. A major shipping and logistics business in Northern California revised upwards plans to hire seasonal workers and expected to convert more seasonal hires to permanent employees than in the past. ... A contact in the business services sector in Washington observed increased competition from other sectors for skilled accounting and information technology professionals that are in short supply across the state. ... Wage growth continued to increase moderately across skill levels and industries. Nonwage compensation also increased at several businesses, often in the form of additional paid vacation days. Many contacts reported that turnover was up noticeably, causing labor costs to rise more than anticipated, as new hires negotiated higher starting wages. A contact in Northern California reported that salaries for software engineers continued to increase noticeably. ... Manufacturing Conditions in the manufacturing sector strengthened. Contacts in the steel industry reported that capacity utilization remained stable at an elevated level despite a tick down in sales to automakers and builders. Solid domestic demand from other sectors and beneficial trade policy developments helped to bolster the industry. Contacts in Northern California observed that new orders of semiconductors were strong, input materials were readily available, and inventory levels were healthy. ... |
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© 2017, Bruce Steinberg. All rights reserved. |
last updated January 15, 2019 |
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