BLS DAILY REPORT, THURSDAY, MAY 6, 1999
New orders for manufactured goods bounced back in March, rising 2 percent,
the Commerce Department's Census Bureau reports. In February, new factory
orders declined 1.8 percent. March was the fourth advance in the last 5
months. "Most indicators concerning the manufacturing sector suggest
somewhat better activity in the months ahead," said the senior economist at
Merrill Lynch. ... (Daily Labor Report, page D-1; Washington Post, page
E10; Wall Street Journal, page A2).
The Federal Reserve's latest "beige book," or summary of current economic
conditions in each of the 12 Federal Reserve districts, reports that
consumer spending in March and April continues to fuel overall economic
growth with purchases of automobiles and other goods. The report also
reveals generally improved manufacturing growth, high levels of both
residential and commercial construction, strong loan demand, and an upswing
in the nation's energy sector reports. ... Despite still-tight labor
markets, wage gains remained in check and prices stable. However, there has
been some pickup in non-wage compensation for higher-level personal, and
employers are using hiring and retention bonuses to attract and hold on to
skilled workers, the central bank notes. ... Economists dubbed the Fed's
latest report on the economy consistent with government data pointing to
continued growth with no inflationary pressures. ... (Daily Labor Report,
page D-4; Washington Post, page E10; New York Times, page C7_____Tight labor
markets are pressuring many employers to pay bonuses to attract and keep
skilled workers, but few workers are seeing their wages rise significantly,
according to a Federal Reserve survey. ... (Wall Street Journal, page A2).
Growth in the nonmanufacturing sector strengthened in April, continuing a
long-term trend, the National Association of Purchasing Management says. ...
Prices paid by nonmanufacturers for materials and services increased in
April for the second month in a row. Employment also rose for the second
consecutive month. ... (Daily Labor Report, page A-10).
Data compiled by the Bureau of National Affairs in the first 18 weeks of
1999 for newly negotiated settlements show that the median first-year wage
increase equals 3 percent and the weighted average increase for settlements
reported to date is 2.5 percent. The manufacturing industry's gain is 3
percent, and its weighted average increase is 2.7 percent. Nonmanufacturing
settlements, excluding construction contracts, show a median increase of 3
percent, with a weighted average increase of 2.3 percent. ... (Daily Labor
Report, page D-6).
DUE OUT TOMORROW: The Employment Situation: April 1999
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