April 26, 2010
Caused in part by temporary factors, last week's economic news was generally positive, with four of the five major economic reports growing. (To read all of last week's indicators, see the Latest Economic Reports section below.)
Inflation at the producer level of activity rose significantly in March. Due to severe weather conditions in Florida earlier in the first quarter which wiped out much of the Sunshine State's winter tomato crop, vegetables prices soured 49 percent in March. Vegetable prices will likely moderate in coming months when tomato harvests from California and Mexico ramp up domestic supply.
On the housing front new and existing home sales rose significantly in March as the April 30th expiration of the homebuyer tax credit comes into view.
Finally, because of a sharp decline in volatile aircraft orders in March after huge gains earlier in the first quarter, new orders for durable manufacturing goods fell by 1.3 percent last month. However, excluding aircraft, new orders for nondefense capital goods -- a good proxy for both domestic and foreign demand for products like machinery and computers and electronics -- rose for the fourth time in the past five months in March.
As both the blue bars and green line in the chart above show, new orders for nondefense capital goods have been on a general upward trend since last May, with orders rising at an annual rate of 6.2 percent in the three months ending in March. It is important to note that the pace of orders has been on a decelerating path over the past few months. This suggests that the dual robust upturns in both domestic and foreign demand for business equipment in the fourth quarter are not being repeated in the first quarter of this year. On April 30, the Commerce Department's advance report on first quarter GDP will provide an initial estimate if foreign or domestic demand is driving the recent increases in capital goods production.
Dave Huether
Chief Economist
National Association of Manufacturers
Over the last several months, many companies slashed expenses, froze pay increases, and cut staffing to the core. But, many survived the downturn and are coming out of the recession. How do you now retain your staff?
Recognize that your top talent always has options. There are organizations right now looking for your strongest people. Review the reasons you made the tough business decisions you had to make. Then work to restore employees' faith and trust in the company. Communicate honestly, often, and directly to and through your managers. Know that engaged employees have a positive economic impact. Reengage employees by recognizing their value. Now is a great time to strengthen your incentive programs, develop career paths, and focus on succession planning. As you look ahead to economic recovery, focus on your best employees, create transparency in communications, and build future career opportunities.
The new Utah Labor Commission rule (R610-3-22) permitting the use of pay cards as an alternative method of paying wages to employees became effective March 24, 2010. This can provide efficiency and flexibility employers did not have before.
The Department of Homeland Security (DHS) recently announced the following new E-Verify resources:
1. Two new training videos, explaining E-Verify procedures and policies, employee rights, and employer responsibilities. They are available, in both English and Spanish, at ww.youtube.com/ushomelandsecurity and www.dhs.gov/e-verify.
2. A telephone hotline for employees seeking information about the E-Verify process and assistance in completing Form I-9. The hotline number (888-897-7781) became active on April 5. [It can also be used to file complaints about possible discrimination or employer misuse of E-Verify.]
In addition, DHS has a new agreement with the Department of Justice that streamlines the adjudication process in cases alleging E-Verify misuse and discrimination.
ECONOMISTS OPTIMISTIC ABOUT GROWTH, JOB CREATION
April 26, 2010 – Today in Manufacturing.net
As industries report better profits and add new jobs, economists are more optimistic about prospects for growth this year, though they still expect recovery to remain slow... continue
As industries report better profits and add new jobs, economists are more optimistic about prospects for growth this year, though they still expect recovery to remain slow... continue
COMING OUT OF THE RECESSION
April 26, 2010 – Employers CouncilOver the last several months, many companies slashed expenses, froze pay increases, and cut staffing to the core. But, many survived the downturn and are coming out of the recession. How do you now retain your staff?
Recognize that your top talent always has options. There are organizations right now looking for your strongest people. Review the reasons you made the tough business decisions you had to make. Then work to restore employees' faith and trust in the company. Communicate honestly, often, and directly to and through your managers. Know that engaged employees have a positive economic impact. Reengage employees by recognizing their value. Now is a great time to strengthen your incentive programs, develop career paths, and focus on succession planning. As you look ahead to economic recovery, focus on your best employees, create transparency in communications, and build future career opportunities.
UTAH PAY CARD RULE FINALIZED
April 26, 2010 – Employers CouncilThe new Utah Labor Commission rule (R610-3-22) permitting the use of pay cards as an alternative method of paying wages to employees became effective March 24, 2010. This can provide efficiency and flexibility employers did not have before.
NEW E-VERIFY RESOURCES FROM DHS
April 26, 2010 – Employers CouncilThe Department of Homeland Security (DHS) recently announced the following new E-Verify resources:
1. Two new training videos, explaining E-Verify procedures and policies, employee rights, and employer responsibilities. They are available, in both English and Spanish, at ww.youtube.com/ushomelandsecurity and www.dhs.gov/e-verify.
2. A telephone hotline for employees seeking information about the E-Verify process and assistance in completing Form I-9. The hotline number (888-897-7781) became active on April 5. [It can also be used to file complaints about possible discrimination or employer misuse of E-Verify.]
In addition, DHS has a new agreement with the Department of Justice that streamlines the adjudication process in cases alleging E-Verify misuse and discrimination.
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