Manufacturing’s Economic Barometer

• For the 12 months ended in May, U.S. wholesale prices have risen 10.8%, near a record annual pace. (This chart shows prices for goods are up 16.6% year over year, driven by a 45% spike in energy costs.)
• The National Association of Manufacturers’ (NAM) Q2 survey of members finds that increased raw material costs now top the list of business challenges, cited by 90.1% of respondents.
  • NAM’s survey found the top sources of inflation were increased raw material prices (97.2%), freight and transportation costs (83.9%), wages and salaries (79.5%), and energy costs (55.9%).
  • NAM CEO Jay Timmons told CNBC that 60% of survey respondents believe inflationary pressures will lead to recession, but that “it doesn’t have to happen” if federal policymakers take immediate action to address energy costs, workforce shortages, and supply disruptions.
• U.S. consumer sentiment, as measured by the University of Michigan, has dropped to its lowest reading on record, according to OMA Connections Partner RSM.
• The average weekly hours of production for Ohio manufacturing employees has declined since December, while the average hourly earnings for all Ohio manufacturing employees now stand at $29.72.

Meanwhile, the head of DHL’s freight-forwarding unit says congestion at the ports won’t begin to ease until 2023 — and even then there won’t be a return to pre-COVID-19 levels. 6/17/2022