BLS DAILY REPORT, THURSDAY, MAY 4, 2000
RELEASED TODAY: The seasonally adjusted annual rates of productivity change
in the first quarter were 1.8 percent in the business sector and 2.4 percent
in the nonfarm business sector. These productivity gains were smaller than
the gains of the previous quarter (6.6 percent in the business sector and
6.9 percent in the nonfarm business sector, as revised). Output growth in
the first quarter, 6.0 percent in both sectors, slowed somewhat from the
rapid fourth-quarter pace, and hours of all persons in the first quarter
grew more rapidly. In manufacturing, productivity changes in the first
quarter were 6.9 percent in manufacturing, 9.9 percent in durable goods
manufacturing, and 2.7 percent in nondurable goods manufacturing. ...
Employment grew at a brisk rate, and new orders placed with U.S.
nonmanufacturing firms were strong during April, according to the latest
survey by the National Association of Purchasing Management. NAPM's
nonmanufacturing business activity index increased by 1 percentage point to
65 percent in April. In survey results, the NAPM said that its members
expect economic growth to remain vigorous in both the manufacturing and
nonmanufacturing sectors during the second half of this year. About 67
percent of purchasing executives surveyed said they expect business activity
to be better or the same as the second half of 1999, which was a boom period
for both consumer and business spending. ... (Daily Labor Report, page
A-7).
Strong economic growth continued in most regions of the country in March
and the first half of April, accompanied by more frequent reports of
intensifying wage pressures, according to the Federal Reserve's latest
"beige book". The majority of the Fed's 12 districts reported strong to
moderate growth. Only the Richmond and Chicago districts said some signs
indicated that growth had slowed slightly. Tight labor markets were driving
up wages in many areas of the country in March and early April, the Fed's
economists said. Another economic report, the employment cost index,
confirmed that wages were accelerating. In that report, private industry
wages grew by 4.2 percent in the year ending in March. ... (Daily Labor
Report, page D-1)_____The U.S. economy was still growing strongly last
month, with shortages of workers intensifying wage pressures but few signs
of added inflation outside of the energy area. Consumer spending was strong
... and factories were running near capacity in some areas. ... (Washington
Post, page E2)_____Interest rates shot higher after the Federal Reserve
reported that wages were rising across the country and investors wondered if
that news would make the central bank more aggressive in its efforts to slow
economic growth. The report on economic conditions in Federal Reserve
Districts across the country said that "there were more frequent reports of
intensifying wage pressures as shortages of workers persisted in all
districts." ... (New York Times, page C8)_____The U.S. economy's longest
growth streak is continuing, but inflationary pressures are joining the
chase. The Federal Reserve's latest regional economic survey found rising
wages, higher energy and commodities costs, and strong consumer demand. But
competition and productivity gains kept those pressures from generating
higher prices for consumers. ... (Wall Street Journal, page A2).
In a shift that experts attribute to the changing economy, higher education
increasingly is seen as the ticket to the middle class, with 87 percent of
Americans saying "a college education is as important as a high school
education used to be," a new study has found. Seven years ago, a majority
of Americans believed that too many people were going to college rather than
directly into technical trades like plumbing or computer repair; now 3 out
of 4 think the country could never have too many college graduates. The
study shows that 77 percent of Americans believe college is more important
now than a decade ago. The project on attitudes about education was
financed by three groups that study education policy and conducted by Public
Agenda, an organization in New York that conducts research on various
issues. It began with telephone interviews of 1,015 adults -- particularly
parents -- in December and included discussions with groups in six cities.
... (New York Times, page A21).
DUE OUT TOMORROW: The Employment Situation: April 2000
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