Daily Briefing – 329

Wage Gains at Manufacturers Fall Behind Growth in Fast Food

Pay for factory jobs has grown so slowly in the U.S. that manufacturers are having trouble competing with fast-food restaurants. For years, factory jobs paid significantly more than those in many other fields, especially for less-educated workers. That is changing, according to economists, manufacturers and federal data.

Since the start of 2020, jobs in many industries including restaurants and retail  

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Daily Briefing – 328

Tight Labor Market Returns the Upper Hand to American Workers

Low-wage workers found something unexpected in the economy’s recovery from the pandemic: leverage. Kyle Mathews, 27 years old, is among the workers benefiting. He had worked at a large grocery store for about four years in various positions. He said he was frustrated by the pay of about $14 an hour, the top of the store’s pay scale, and the long hours. 

In February, he visited a staffing firm  

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Daily Briefing – 327

Momentum Grows for 2-Step Strategy on Infrastructure

A bipartisan group of U.S. senators that’s working to make a deal on infrastructure with President Joe Biden’s administration has made progress, as their ranks late Wednesday swelled to 21 senators from just 10 previously. That new figure includes 11 Republicans, up from five and enough potentially for the Senate to approve the bipartisan group’s package if all 50 of the chamber’s Democrats  

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Daily Briefing – 326

Federal Reserve Now Projects Rate Increases in 2023 

Fed policymakers expect to make two interest rate increases by the end of 2023, the central bank’s updated summary of economic projections showed Wednesday. Previously, the median official had anticipated that rates would stay near zero — where they have been since March 2020 — at least into 2024. The Fed now sees rates rising to 0.6 percent by the end of 2023, up from 0.1 percent.

Inflation  

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Daily Briefing – 325

The 70 Percent Solution – State Reaches Vaccine Threshold Set By Governor for Broad Reopening

Governor Andrew M. Cuomo yesterday announced that COVID-19 restrictions are lifted immediately as 70 percent of New Yorkers aged 18 or older have received the first dose of their COVID-19 vaccination series. 

With the removal of the State’s minimum standard for reopening, businesses are free to choose to lift all or some restrictions, continue to adhere to the State’s archived guidance,  

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Daily Briefing – 324

“Targeted, Responsible” – Collins Pushes Bipartisan Infrastructure Deal

Republican Senator Susan Collins of Maine advocated Sunday for a “targeted, responsible” infrastructure package with bipartisan backing as a group of senators attempts to broker a deal with the White House to rebuild the nation’s roads, bridges and waterways. The plan includes $579 billion in new spending over five years, a significant increase from the offer by the GOP senators,  

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Daily Briefing – 323

“Fantastic Degree of Harmony:” G-7 Leaders Agree on Vaccines, China and Minimum Corporate Tax

Leaders of the Group of Seven wealthy nations Yesterday pledged more than 1 billion coronavirus vaccine doses to poorer nations, vowed to help developing countries grow their economies while fighting climate change and agreed to challenge China’s “non-market economic practices” and call out Beijing for rights abuses in Xinjiang and Hong Kong. British Prime Minister Boris Johnson praised the  

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Daily Briefing – 322

Senate Passes Bill to Address Competition From China

The Senate passed a far-reaching $250 billion China legislative package on Tuesday, offering a framework for how the U.S. plans to counter increasing competition from China.

Much of the sweeping package is aimed at bolstering the country’s ability to out-compete China, with increased investment in research and development around advanced technology like artificial intelligence and funding for  

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Daily Briefing – 321

Job Openings Jump to Fresh Record High of 9.3 Million

U.S. job openings rose in April to a fresh record high, along with the number of people who voluntarily left their jobs, underscoring fervent labor demand and turnover as businesses emerge from pandemic-related restrictions and the economy strengthens. The number of available positions climbed to 9.3 million during the month, the highest in data back to 2000, from an upwardly revised 8.3 million  

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Daily Briefing – 320

Yellen Says Higher Interest Rates Good for Country 

U.S. Treasury Secretary Janet Yellen said that President Joe Biden’s $4 trillion spending proposal would be positive for the country, even if it leads to a rise in interest rates.

During an interview with Bloomberg News, the former Federal Reserve chair said the president’s plans would total about $400 billion each year — a level of spending she argued was not enough to create an inflation  

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Daily Briefing – 319

U.S. House Democrats Propose $547 Billion “Surface Transport Plan”

A group of key U.S. House Democrats introduced legislation on Friday to authorize $547 billion in additional spending over five years on surface transport, a plan that would mostly go to fixing existing U.S. roads and bridges and increase funding for passenger rail and transit. The bill adopts some proposals made by Democratic President Joe Biden as part of his broader $2.3 trillion infrastructure  

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Daily Briefing – 318

Half of US States End Enhanced Unemployment Benefits

Half of the states in the U.S., all led by Republican governors, have announced plans to cut off billions of dollars in federal unemployment benefits for residents, as the number of Americans who have been vaccinated continues to increase. Alaska, Iowa, Mississippi and Missouri will stop sending benefits on June 12, according to Reuters. For the other 21 GOP-led states, checks will phase out through  

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Daily Briefing – 317

Biden, Capito Seek Progress in Infrastructure Talks

The White House meeting between the president and Sen. Shelley Moore Capito (R., W.Va.) comes after Senate Republicans unveiled a plan to spend $928 billion over eight years to update roads, bridges, rail and transit systems. That offer is an increase from the GOP’s original five-year $568 billion proposal, but it still left the two sides far apart. Senate Minority Leader Mitch McConnell (R.,  

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Daily Briefing – 316

ISM – Good News

Manufacturing Purchasing Managers’ Index (PMI) rose to 61.2 in May, up from 60.7. “The headline index indicates expansion for the 12th month in a row. ISM said, the past relationship between the Manufacturing PMI and the overall economy indicates that the Manufacturing PMI for May (61.2 %) corresponds to a 5.2% increase in real gross domestic product (GDP) on an annualized basis.”

Looking  

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Daily Briefing – 315

First Biden Budget Retains Trump-Era Business Tax Break

Owners of closely held businesses would still get a 20% tax deduction under President Biden’s tax plan, leaving high-income people who run construction companies and manufacturing firms benefiting—for now—from a provision that Republicans created in 2017 over Democratic opposition.  The deduction went untouched in the first $2.4 trillion worth of net tax increases that were detailed by  

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Daily Briefing – 314

GOP Senators Ready $1T Infrastructure Counteroffer – Funded By COVID Relief Money – to Biden

Senate Republicans revived negotiations over President Joe Biden’s sweeping investment plan, preparing a $1 trillion infrastructure proposal that would be funded with COVID-19 relief money as a counteroffer to the White House ahead of a Memorial Day deadline toward a bipartisan deal.

The Republicans said Tuesday they would disclose details of the new offer by Thursday, sounding upbeat after both  

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Daily Briefing – 313

Biden Tax Increases Face Scrutiny

Democrats in Congress are showing some reluctance to embrace President Biden’s proposed tax increases. Biden’s proposal to increase the corporate tax to 28% from 21% hit a roadblock early on, with moderate Democratic Senator Joe Manchin of West Virginia saying he preferred 25%. Another element—a dramatic hike in the capital gains tax, especially for the wealthy at the time they inherit assets—has  

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Daily Briefing – 311

Factory Activity, Backlogs Rise in First Half of May

IHS Markit’s flash US manufacturing purchasing managers’ index rose to 61.5 in the first two weeks of May, the highest reading for factory activity since 2009.

According to IHS Markit “manufacturers highlighted that strain on capacity and raw material shortages are expected to last through 2021.” It noted that the supply crunch was raising production costs for manufacturers,  

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Daily Briefing – 312

U.S. Covid Cases Hit Lowest Level Since June

In the U.S., COVID-19 cases have hit their lowest level in almost a year, according to data from Johns Hopkins, with about 39% of the population fully vaccinated, and with 49% of the population having received at least one shot—just in time for Memorial Day weekend. Of course, there’s a very different picture in other parts of the world

The decline of cases is a hopeful sign, especially as  

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Daily Briefing – 310

Auto Industry Chip Shortage Remains Critical

The prices of used cars are soaring across America. One index of second-hand values published by Manheim, a used-car auction business, has surged by 61% since last April. A shortage of new vehicles is one problem, thanks to the world’s worsening shortage of semiconductors, which is crimping production. In America alone, carmakers shed 27,000 jobs last month as plants short on chips ground to a  

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Daily Briefing – 309

White House Encouraged by Infrastructure Talks With Republicans

Republican senators and the Biden administration came to no agreement on how much to spend on a major new infrastructure package, or how to pay for it, in another negotiating session Tuesday.  “I would say there is progress but we still have a ways to go,” Sen. Shelley Moore Capito of West Virginia, who led the presentation of a Republican counteroffer to the administration in Tuesday’s discussions,  

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Daily Briefing – 308

Beginning Today – New Mask Guidelines Begin, Capacity Restrictions End 

Beginning today, May 19th, fully vaccinated people will no longer be required to wear masks indoors or out in New York. Theaters and arenas can move to full capacity for vaccinated people, but with six feet of distance between non-vaccinated people. Individual businesses are still able to require masks for customers and/or employees.

  • The indoor social gathering limit will increase from 100 to 250 people on May 19.
  • The outdoor residential gathering limit of 25 people is removed as of May 19.
  • The indoor residential gathering limit will increase from 10 to 50 people on May 19.
  • Large-scale indoor event venues will operate at 30% capacity starting May 19.
  • Beaches and pools can operate with six-foot social distancing, with the goal of to reopen to 100% capacity by July 4.

Read the reopening reference guide

What Should Your Business Do About the Changing Mask Guidance?

Council Associate member and  

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Daily Briefing – 307

New York State to Adopt New CDC Guidance on Mask Use and Social Distancing for Fully Vaccinated Individuals

Governor Cuomo yesterday announced that beginning May 19, New York State will adopt the CDC’s “Interim Public Health Recommendations for Fully Vaccinated People” for most business and public settings. Consistent with the CDC guidance, Pre-K to 12 schools, public transit, homeless shelters, correctional facilities, nursing homes, and healthcare settings will continue to follow State’s  

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Daily Briefing – 306

Global Manufacturing Soars, But Input Costs Soar at Fastest Pace
in 10 Years

The J.P. Morgan Global Manufacturing PMI rose from 55.0 in March to 55.8 in April, the fastest pace in 11 years, buoyed by growth in new orders, output and hiring, each of which was the strongest in at least a decade. Overall, manufacturers remain very upbeat in their outlook for production over the next six months. However, survey respondents also cited significant supply chain disruptions, with  

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Daily Briefing – 305

PPI 6.2 % – U.S. Producer Prices Top Forecasts, Adding to Inflation Pressure

The Producer Price Index rose 0.6% from March, according to the U.S. Bureau of Labor Statistics. Year over year, the PPI spiked 6.2%, the largest increase since the agency started tracking the data in 2010.

The core PPI, which excludes volatile items like foods, energy and trade services, rose 0.7% in April from the previous month and jumped 4.6% year over year. The increase from a year ago was the  

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