The Kansas City Fed released its May manufacturing survey on Thursday.
There was a sharp decline in manufacturing activity, which according to the KC Fed is “mostly attributable to declines in durable goods manufacturing, including a continued decline in aircraft production and further weakness in metals and machinery.”
Factories, however, still plan on keeping employment steady or even adding workers over the next year.
There was a particularly sharp comment in the release’s “selected comments” section suggesting it’s getting harder to find qualified candidates (via @thestalwart):
“It is becoming increasingly difficult to find qualified job candidates who are not carrying some form of personal baggage / problem.”
This is a sign that the labour market may be getting tighter. That hopefully means wage growth in the economy at some point.