KC Fed August manufacturing index +12 vs -20 prior

<ul><li>Prior was -20</li><li>Composite index 0 vs -11 prior</li></ul><p>Specials question in the survey asked about wages and pricing. Both showed dwindling inflation.</p><p>Comments in the survey:</p><p data-block-key="7x3f1">“Obviously at a macro level inflation is way
down, but in our little corner of the world it is still a huge threat.
Lots of volatility and uncertainty. Some items way down, other items way
up. Commodities in general are just not as predictable as they used to
be.”</p><p data-block-key="64kri">“Our hourly billing rates are still
below what most industries charge. With demand continuing to increase
and outpacing labor supply, we will continue to increase our rates.”</p><p data-block-key="bc37l">“Companies
are literally buying jobs just to keep crews busy cause there are so
many gaps in the backlog, but you don't dare pare down or lay off on
your skilled labor cause you won't ever get them back.” “American
manufacturers are being forced into a much more difficult position
competitively with huge labor cost increases against foreign
competitors.”</p><p data-block-key="b77e2">“We are seeing some abatement
with wages, however our medical premiums are increasing for next
renewal cycle in September. The quality of available workforce is still a
challenge.”</p><p data-block-key="1ekpe">“We are seeing some softening in the market.”</p><p data-block-key="7cph8">“The
tooling industry faces significant challenges due to low-cost imports
from China and India. We are going to struggle to keep highly trained
staff due to pressure on wages caused by reduced margins necessary to
stay competitive with those who are paying much less for similar skill
set.”</p>

This article was written by Adam Button at www.forexlive.com.