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November 2019 Federal Reserve Board's Beige Book
DISCLAIMER: Below are excerpts from the Federal Reserve Board's Beige Book published on November 27, 2019. It "... was prepared at the Federal Reserve Bank of Dallas based on information collected on or before November 18, 2019. 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 and / or highlighted) was done solely at the discretion of steinbergemploymentresearch.com. The full report can be found at the Federal Reserve Board. The next Beige Book -- and the first one for 2020 -- is scheduled to be released on January 15, 2020, 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 Business contacts in the First District cited mostly positive results when contacted in November. Both retailers and manufacturers reported modest to moderate increases in revenues compared with a year earlier, as did staffing firms. ... Most responding firms cited a positive outlook, with some noting a recent upgrade in their expectations. Employment and Wages Labor markets remained tight in the First District even as business contacts cited modest expansion of headcounts in aggregate. Retail contacts reported having no problems hiring staff or having difficulty hiring only for selected positions. By contrast, several manufacturers noted that hiring was difficult and that labor costs had risen. At the same time, manufacturers reported no major positive revisions to hiring plans. Staffing respondents saw strong demand for labor and continued to experience tight labor supplies, particularly of highly-skilled workers. Most staffing contacts were able to increase bill rates and pay rates concurrently, ranging from 4 percent to 20 percent; one held both rates unchanged from the last quarter. Manufacturing and Related Services Reports from eight manufacturing contacts were more positive in this round than in the recent past. In some cases, contacts reported their first year-on-year sales growth since 2018. However, part of the improvement reflects a weak comparison period a year earlier: The first half of 2018 was strong, partly because of tax cuts, but tariffs and general trade uncertainty contributed to weakness in the second half of 2018. A notable area of strength was semiconductors, which had been going through a down cycle that industry participants said was only partly attributable to global economic patterns; semiconductor industry cycles are often out-of-sync with the rest of the economy. Two contacts reported positive revisions to their capital expenditure plans. One is a manufacturer of veterinary supplies which said, among other things, that swine flu had led Chinese producers to increase production of chickens, requiring purchase of new veterinary technologies. Manufacturing respondents were positive about the near-term future and half said they had made upward revisions to their forecasts recently. Reasons varied. For a furniture maker, it was mostly a single large order from a new type of customer. For other firms, it was the trough in the semiconductor cycle.
Staffing
Second District -- New York (CT, NJ & NY) return to District list There has been little or no growth in the Second District economy in the latest reporting period. The labor market remained tight, with slowing hiring activity and wage growth. ... Manufacturing activity was essentially flat, while business in the transportation and distribution sectors grew modestly. However, most service industries reported some softening in business conditions. Business contacts remained fairly restrained in their optimism about the near-term outlook. ... Employment and Wages The labor market has remained tight across the District, but hiring has slowed. Business contacts have continued to report trouble finding workers to fill a wide range of jobs such as software developers and engineers, accountants, retail clerks, mechanical engineers, machinists and welders. Two major employment agencies noted that almost all job candidates are already working, and that many are reluctant to switch jobs, particularly at this time in the year. Businesses overall continued to report little change in staffing levels, as job creation slowed. Contacts in manufacturing, education & health, and leisure & hospitality reported modest net hiring; however, finance, real estate, and wholesale trade firms indicated modest declines in employment, on balance. Looking ahead to the next six months, businesses in manufacturing and most service sectors still planned on adding to staff; however, businesses in the information, finance, and transportation sectors projected modest declines in employment. Businesses overall reported that wage growth has moderated slightly in the latest reporting period, though contacts in leisure & hospitality and education & health reported more widespread increases. Manufacturing and Distribution Manufacturers reported that business activity has remained flat. On the distribution side, wholesalers noted a significant rebound in activity, while transportation contacts said that activity grew modestly. Looking ahead, manufacturers, wholesalers, and transportation firms indicated that they anticipate modest growth in the months ahead, on balance. Contacts in all these sectors have expressed ongoing concern about tariffs, trade tensions, and related uncertainty, as well as the rising minimum wage in New York. Services Businesses across almost all service industries reported some weakening in activity, on balance, since the last report. A notable exception has been in the leisure & hospitality sector, where contacts noted moderate growth in activity. Broadway theaters reported that attendance was fairly sturdy in October but dropped off a bit in the first half of November, as both attendance and revenues slipped below comparable year-ago levels. Other service industries generally reported softening activity — particularly in the information and finance sectors. Professional & business and education & health service firms reported some modest weakening in conditions. Service firms, even those in leisure & hospitality, have grown somewhat less optimistic about the near-term outlook.
Third District -- Philadelphia (DE, PA & NJ) return to District list Aggregate Third District business activity continued at a modest pace of growth during the current Beige Book period. Growth rates slowed from the prior period to a modest pace in manufacturing and nonauto retail sales, and to a slight pace for tourism. ... Labor markets tightened further throughout the District. Wages continued growing moderately, but employment growth appeared to slow to a slight pace. ... Most contacts expected current business conditions to continue through 2020 but remained cautious in their planning. Employment and Wages Employment grew slightly during the current Beige Book period – a slower pace than in the prior period. About two-thirds of the firms reported no change in staff. While the share of manufacturers reporting a higher number of employees rose, the share among the much larger nonmanufacturing sectors fell. Average work hours continued to edge down since the prior period. The firms continued to report very tight labor market conditions. Staffing firm contacts all noted challenges to hiring, as the labor shortages continued to constrain placements. One staffing contact also reported that order activity was down; another noted that orders had been delayed, after which clients were trying to catch up with production – necessitating added incentives to attract workers for overtime. Another staffing firm noted pressure from a client seeking contact concessions in order to absorb some of the cost of tariffs on the firm's products. Wage growth continued at a moderate pace. While the overall pressure appears to have eased slightly, contacts noted specific pressures at lower wage rates. One staffing firm reported more difficulty recruiting for firms that only offered minimum wage, and another indicated that a different staffing firm was deploying yard signs to recruit for jobs paying $16 an hour. The share of nonmanufacturing contacts who reported increases in wage and benefit costs ticked up to 44 percent; just 2 percent reported decreases Manufacturing On balance, manufacturers reported modest growth in activity – somewhat slower than the moderate pace reported during the prior period. Nearly twice as many firms reported increases in shipments and new orders than reported decreases; however, the percentage reporting increases rose to about one-fifth of all firms that reported. The growth was broadly shared, as the makers of lumber products, paper products, chemicals, primary metal products, fabricated metal products, and industrial machinery all tended to note gains in new orders and shipments. Comments were mixed. A couple of primary metals firms reported positive trends, but the firms from several other sectors noted weakening orders, competitive business lost as a consequence of tariffs, and production constraints for lack of labor. Manufacturers' expectations of activity over the next six months were mostly unchanged. Expectations of shipments and of new orders edged higher, remaining above long-term nonrecession averages. Expectations of future employment fell, while planned capital spending rose. Nonfinancial Services On balance, activity at service-sector firms continued at a modest pace of growth. The percentage of firms reporting increases in new orders nearly doubled, and the share of firms reporting increases in current revenues edged higher. Over 55 percent of the firms – more than in the prior period – expect growth over the next six months.
Fourth District -- Cleveland (KY, OH, PA & WV) return to District list Overall economic activity in the Fourth District increased modestly, an improvement after a couple periods of little growth. Professional and business services contacts continued to see strong and increasing activity. Manufacturers reported slight demand growth for the first time in several months, noting that while their international sales remained weak, domestic demand was stronger than they had predicted. ... Contacts in many sectors were optimistic about near-term growth prospects. Employment rose slightly on balance, largely on the strength of professional and business services hiring, while overall wage growth was modest. Output price inflation was modest on balance. Employment and Wages Aggregate employment increased slightly over the period. Professional and business services firms continued to staff up to meet demand growth, accounting for most of the net employment gains. ... Most manufacturers had stable staffing, but a couple steel manufacturers cut temporary workers and reduced hours for permanent employees. Long-haul trucking and rail companies reduced staffing levels because of softening demand. Wages rose modestly overall. Manufacturers increased wages and offered retention bonuses to compete for talent. Retailers across subsectors raised pay rates, citing tighter labor markets. While professional and business services firms reported only slight wage pressure, other white-collar industries, including banking and real estate, saw stronger wage pressure. One community banker said he needed to raise wages 10 percent to attract qualified talent. ... Manufacturing Manufacturers reported a slight increase in activity, although overall conditions remained relatively soft. Domestic demand held up better than manufacturers had anticipated. However, several contacts said international weakness still weighed on demand, especially softness in western and central Europe and the ongoing negative impacts from trade tensions with China. One steel producer noted that declines in steel prices pushed up demand as customers negotiated contracts for 2020 in an effort to lock in low prices, while another said that a falling price environment encouraged customers to hold lower inventory and buy on an as-needed basis. Aside from the usual holiday slowdown, manufacturers were relatively optimistic that conditions would continue to improve in the coming months, and several noted that they were working on plans for increased capital investment for 2020. Professional and Business Services Activity in the professional and business services sector has strengthened further since the previous report. Contacts from a variety of subsectors continued to report strong demand for business services and suggested that their clients were investing in growth through activities such as marketing and mergers and acquisitions. One business development contact reported a considerable increase in activity in recent weeks because of a number of businesses that are opening new locations in the area. Overall, the majority of contacts in professional and business services expect favorable conditions to continue into the near future.
Fifth District -- Richmond (MD, NC, SC, VA & WV) return to District list The Fifth District economy grew moderately since our previous Beige Book. A majority of manufacturers reported growth in shipments and new orders, although tariffs and trade uncertainty were concerns for many producers. ... Labor demand strengthened while wage increases were moderate, overall. ... Employment and Wages The demand for labor strengthened moderately in recent weeks. Employment agencies reported a seasonal pick-up in new job openings and an increase in direct hire recruitment services, rather than temporary, for larger clients. Employers continued to report difficulties finding qualified workers. A few firms sought to fill job openings with in-house training programs, apprenticeship programs, or partnerships with educational institutions. Wages increased moderately, overall. Meanwhile, staffing agencies reported increased wage pressures for jobs in the lower pay scales. Manufacturing Manufacturing in the Fifth District grew moderately since our last report. Contacts reported increases in shipments and new orders, overall, as strong demand supported continued growth for many manufacturers. However, tariffs and trade continued to be concerns since tariffs led to higher costs of raw materials and lower profit margins. Trade-related uncertainty remained significant. Lower profitability caused some companies to decrease production levels and staff headcounts. Meanwhile, some manufacturers struggled on the demand side, such as a Virginia yarn manufacturer, who reported that economic uncertainty is hurting demand by leading some customers to reduce inventory levels. Nonfinancial Services On balance, nonfinancial services firms reported slight growth in demand in recent weeks. Hospitals and health care providers continued to experience solid growth. A records management firm, on the other hand, saw softer federal government spending in recent weeks. Advertising and marketing firms were generally positive, although one marketing executive believed that the outlook in his industry had shifted from optimistic to cautiously optimistic or "a little nervous". Several firms indicated that challenges finding qualified workers and general economic uncertainty were constraining growth and leading to expectations for slower growth heading into 2020.
Sixth District -- Atlanta (AL, FL, GA, LA, MS & TN) return to District list Sixth District business contacts indicated that economic activity expanded modestly since the previous report, and the outlook among contacts remained positive. Tightness in the labor market continued to constrain growth in many sectors. Contacts noted that wage pressures continued to increase for lower-skilled positions. Firms continued to report rising nonlabor costs, and businesses affected by tariffs indicated they were likely to pass along cost increases to customers.... Manufacturing activity accelerated, and new orders and production levels rose over the reporting period. ... Employment and Wages Firms continued to report that staffing levels were in line with projections of flat to slightly higher growth in payrolls compared with the prior year. As reported last period, exceptions were in retail, trade, and logistics, where labor force reductions were noted. Contacts in various geographies and industry segments continued to cite labor market tightness as constraining growth. Consequently, firms continued to pursue automation of certain operational processes. Attracting and retaining talent remained another labor market challenge, as employers continued to explore innovative recruiting and retention tactics. Annual wage increases, on average, remained in the 3-4 percent range; however, contacts reported that wage pressures continued to build for lower-skill positions. Manufacturing Manufacturers indicated that overall business activity accelerated slightly since the last report. New orders and production levels rose, while finished inventories remained relatively flat. Purchasing managers reported that wait times for supply deliveries were slightly longer. Optimism for future production among manufacturing contacts decreased, with only one-fifth of contacts expecting higher levels of production over the next six months, compared to one-third in the last reporting period. Contacts continued to mention trade policy as a potential downside risk to their outlook.
Seventh District -- Chicago (IA, IL, IN, MI & WI) return to District list Economic activity in the Seventh District increased slightly overall in October and early November, and contacts expected growth to continue at a similar pace over the next 12 months. Employment, consumer spending, and manufacturing all increased slightly. ... Wages and prices rose slightly and financial conditions improved modestly. ... Employment and Wages Employment increased slightly over the reporting period, though contacts expected a somewhat faster rate of growth over the next 12 months. Hiring continued to be focused on professional and technical, sales, and production workers. As they have for some time, contacts indicated that the labor market was tight and that it was difficult to fill positions at all skill levels. Multiple contacts reported bringing back retired workers as a way to fill openings. Manufacturers facing slow demand again reported cutting hours rather than laying off workers because they were worried the tight labor market would make it too difficult to hire when demand recovered. A staffing firm reported a slight decrease in billable hours due to lower demand from manufacturers. Wages increased slightly overall; contacts were most likely to report increases for managerial, professional and technical, and administrative workers. ... Business Spending Business spending decreased slightly in October and early November. Retail inventories were a little high overall. One contact indicated that retailers were building stocks as a hedge against potential tariff increases. Inventories of GM vehicles were lower than normal due to the UAW strike, but contacts expected them to return to normal by the end of the year. Most manufacturers reported comfortable inventory levels. Capital spending declined some, though contacts expected a modest increase in spending over the next 12 months. Outlays were primarily for IT equipment and intellectual property. ...l Manufacturing Manufacturing production increased slightly overall in October and early November in spite of the strike at GM. Steel demand increased slightly, with one contact reporting strong demand from energy transmission firms but slightly weaker demand from the auto sector. Heavy machinery demand increased slightly, spurred by growth in the construction and mining industries. Auto production declined due to the GM strike, but contacts reported that overall auto industry demand was flat and at a solid level. Contacts supplying GM reported lower shipments due to the strike and expected the recovery in activity to take until the end of the year. Specialty metals manufacturers reported little change in order books, with flat activity across most major sectors. Contacts reported increased shipments of heavy trucks, but a decline in new orders. Manufacturers of building materials reported a slight increase in sales.
Eighth District -- St. Louis (AR, KY, IL, IN, MO, MS & TN) return to District list Economic conditions have been mixed but generally unchanged since our previous report. Contacts across multiple industries continued to note a heightened sense of economic uncertainty. There was a slight uptick in employment. Wage increases were widespread and higher than in previous years for the vast majority of firms. ... Reports from manufacturing firms were mixed. ... Across all industries, the outlook among surveyed contacts remained slightly pessimistic; on net, 12 percent of respondents expect conditions during 2020 to be worse or somewhat worse than in 2019. Employment and Wages Employment has increased slightly since the previous reporting period. On net, 11 percent of survey respondents reported that employment was higher than a year ago, and 41 percent, on net, expect to hire additional workers over the next 12 months. Labor market tightness persisted across the District; on net, 34 percent of contacts reported difficulty finding qualified workers. Firms continued to deal with worker scarcity by raising benefits, lowering hiring standards, investing in technology, and/or retraining existing employees. Employment conditions in manufacturing remained more subdued. Fifty-seven percent of manufacturing contacts reported a desire to hire more workers, but other survey-based results showed slight employment declines in the sector. The tight labor market has continued to put upward pressure on wages, which have increased moderately since the previous report. On net, 38 percent of survey respondents indicated that wages were higher than a year ago. Seventy-four percent of those seeking to hire new workers reported raising wages for some or most job categories, and 63 percent of all contacts reported raising wages for existing employees by more than they have in the past few years. Manufacturing Manufacturing activity has been mixed since our previous report. For the second consecutive quarter, a majority of survey respondents reported declines in production, new orders, and capacity utilization relative to one year ago. Makers of vehicle parts noted that a slowdown in the automotive industry has negatively impacted sales. However, survey-based indexes indicate that manufacturing activity overall expanded slightly in Arkansas and Missouri from September to October, with new orders and production increasing moderately in both states. Contacts were slightly optimistic about the future; on net, most survey respondents expect manufacturing conditions to improve slightly in the first quarter of 2020. Nonfinancial Services Activity in the services sector has improved modestly since the previous report. On net, around 40 percent of survey respondents reported higher sales compared with the same time last year, and 45 percent expect this growth to continue into the first quarter of 2020. However, nearly a third of contacts noted that sales halfway through the fourth quarter have fallen short of expectations, which some credited to increased economic uncertainty. ...
Ninth District -- Minneapolis (MI, MN, MT, ND, SD & WI) return to District list The Ninth District economy grew at a modest pace since the last report. Employment grew slightly, while wage pressures were moderate overall and price pressures remained modest. ... manufacturing declined slightly ... Employment and Wages Employment was slightly higher since the last report. In several ad hoc polls, conducted in three states among a mix of business types, a majority of respondents said they were hiring in some capacity. A broader poll of contacts across the District found somewhat softer (but still positive) sentiment about recent and future employment levels at their firms. An October survey of manufacturers in Minnesota and the Dakotas found that hiring sentiment had improved from contractionary levels a month earlier. A second survey among bankers and other rural businesses in these same states found that new-hiring sentiment was quite positive. Job postings this fall were modestly higher in the Dakotas and Michigan's Upper Peninsula, while Minnesota's were lower. A major layoff at a manufacturer in central Minnesota, involving more than 800, was seen by some local employers as a contribution to the local labor pool. However, contacts widely noted difficulty filling open positions, including in manufacturing, which has been experiencing some overall softness. Many staffing contacts reported lower job orders from clients, particularly in manufacturing, with some seeing declines of 20 percent, year over year. Initial unemployment insurance claims over the most recent six-week period (through the end of October) were about 3 percent higher than a year earlier, with increases seen in Montana, North Dakota, and Wisconsin, while Minnesota saw a slight decline. Wage pressures were moderate overall. Staffing contacts suggested varying degrees of wage pressure. Among a group of six staffing offices (all with the same franchise, located mostly in Minnesota), average wages rose less than 2 percent at three locations over the previous 12 months, but more than 5 percent at two locations, and almost 10 percent at the remaining office. In the span of one week in October, a staffing contact in western Wisconsin said four manufacturing clients increased wages by $1 to $3 an hour. A Minneapolis Fed survey of Districtwide businesses found that 62 percent of employers raised wages by 3 percent or more compared with a year earlier. However, among a small sample of large Minnesota firms, most reported increasing wages by less than 3 percent over the past 12 months. As has been the pattern for some time, however, contacts continued to believe that future wage increases will be slightly to modestly softer than previous wage gains. Manufacturing District manufacturing activity declined modestly from the last report. Contacts continued to point to decreases in orders, production, and capital spending. A heavy equipment producer noted a slowdown in sales that they initially blamed on heavy rainfall this year, but said this "masks a much deeper contraction in capital equipment spending." Custom manufacturers reported a decrease in order backlogs. In contrast, an index of manufacturing conditions indicated increased activity in October compared with a month earlier in Minnesota and South Dakota and flat activity in North Dakota.
Tenth District -- Kansas City (CO, NM, MO, NE, OK & WY) return to District list Tenth District economic activity held steady in October and early November, although conditions were mixed across sectors. ... Manufacturers noted weaker activity, led by continued declines in durable goods production, but manufacturers expected activity to stabilize in the months ahead. ... District employment and employee hours held steady since the previous survey period, but a majority of contacts reported ongoing shortages of qualified labor. Wages continued to expand at a modest pace, and contacts expected moderate growth in the months ahead. Services sector contacts noted higher input and selling prices since the previous survey period, while manufacturers noted slightly lower prices for finished products and raw materials Employment and Wages District employment and employee hours held steady since the last survey period, and both remained above year-ago levels. Job gains in the professional and technical services, real estate, health services and wholesale trade sectors were offset by losses in the manufacturing, auto sales, transportation, and tourism and hotel sectors. Employment in all industries, with the exception of the auto sales sector, was at or above levels from the same period a year ago, and contacts expected employment to rise in the next few months. A majority of contacts continued to report labor shortages across all skill levels, and a lack of qualified applicants was cited as the number one reason for not filling open positions over the last three months. Specifically, respondents noted shortages for truck drivers, hourly retail and food-services positions, auto-technicians, IT personnel, nurses, engineers and skilled construction trades. Wages continued to grow modestly since the previous survey period, and strong gains were expected in the months ahead. Manufacturing and Other Business Activity Manufacturing activity fell slightly in October and early November due to persistent declines in durable goods factory activity, however manufacturers expected activity to slightly increase in the months ahead. Factory production, order backlogs, and new orders each declined com-pared to the previous survey period, and contacts expected production, shipments, and the volume of new orders to increase in the months ahead. Capital spending was modestly above year-ago levels, and contacts anticipated slight growth in spending in the months ahead. Outside of manufacturing, ... professional and high-tech services contacts expected spending to increase.
Eleventh District -- Dallas (LA, NM & TX) return to District list Moderate expansion continued in the Eleventh District economy. Growth held fairly steady in services and retail but decelerated slightly in manufacturing. ... Employment growth was solid and upward wage pressures continued. ... Uncertainty generally remained elevated, driven by trade tensions, the political climate, and weaker global growth. Employment and Wages Employment continued to expand at a solid pace. Hiring accelerated slightly in the service sector and remained above average in manufacturing. Headcounts continued to fall in the oil and gas sector. Labor shortages remained pervasive, with multiple contacts specifically mentioning the drag this was having on business growth. Staffing services contacts reported a very tight labor market with most companies struggling to find qualified workers across skill levels. Wages continued to increase, with pressures picking up slightly over the reporting period. Manufacturing Expansion in the manufacturing sector slowed to a more modest pace, and demand weakened slightly.... Production declines were noted in machinery and fabricated metals manufacturing — two segments with ties to the energy sector. Meanwhile, output of nondurable goods picked up pace over the reporting period. Refiners and chemical producers said softening global demand, tariffs, and ongoing trade policy uncertainty were squeezing margins. Outlooks among manufacturers remained positive, and expectations for manufacturing activity six months ahead increased across a variety of measures. Trade tensions remained a concern, however, and some contacts noted that uncertainty was making planning difficult. Nonfinancial Services Nonfinancial services activity continued to expand moderately over the reporting period, even picking up pace slightly. Growth in professional and technical services continued to lead the expansion, joined in the latest period by healthcare services. Weakness was seen in administrative and support services. Staffing services contacts reported mostly softer demand, though still at relatively high levels. Staffing contacts noted strength in healthcare and banking but weakness in energy. Activity in the transportation and warehousing sector remained mixed ... Service-sector outlooks improved over the past six weeks, although uncertainty remained elevated. Global economic uncertainty and trade tensions continued to be the predominant factors hampering future planning. Domestic political uncertainty moving into the 2020 elections also came up as an area of concern for several contacts.
Twelfth District -- San Francisco (AK, AZ, CA, HI, ID, NV, OR, UT, & WA) return to District list Economic activity in the Twelfth District expanded at a modest pace during the reporting period of October through mid-November. The labor market remained tight, employment growth picked up moderately, and wages rose modestly. ... Employment and Wages The labor market remained tight, and employment growth picked up moderately. Businesses in sectors including health care, finance, and manufacturing noted solid hiring activity, while others reported that shortages of qualified labor prevented them from filling vacancies. In the Mountain West, a producer of building products hired tradespeople in response to improved construction activity, and a contact in Boise reported that a major e-commerce business was opening a distribution center in the area, resulting in anticipatory hiring. In the Pacific Northwest, a health-care provider expanded its workforce in response to higher demand. Worker turnover also spurred hiring activity, as in the case of a credit union in Northern California. A community banking contact in Oregon saw previously robust demand for workers moderate slightly. Wages rose modestly across sectors as companies tried to attract qualified workers in highly competitive labor markets. Wages picked up further for skilled finance and technology workers, according to community banks, credit unions, and financial technology companies across the District. A provider of business security services in Seattle observed that labor costs have risen to the highest level in company history. A few businesses in higher cost urban areas noted efforts to relocate jobs to lower cost areas of the District in order to contain labor compensation. Several reports mentioned that forthcoming increases in the minimum wage taking effect in the new year would result in higher wages for most hourly workers as employers adjust pay scales upwards. Manufacturing Activity in the manufacturing sector was little changed. A metals manufacturer in the Pacific Northwest reported that demand was steady, though order backlogs for most producers were no longer growing. Domestic wood product manufacturers saw the pace of sales pick up modestly thanks to the stabilizing housing market, which followed the broad decline in mortgage rates. In general, these manufacturers also noted stiff competition with producers from countries that have not been targeted with tariffs. However, one contact noted that production constraints at sawmills in Canada have benefited domestic producers by reducing Canadian supply to the United States. |
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© 2019, Bruce Steinberg. All rights reserved. |
last updated November 27, 2019 |
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