Federal Reserve Bank of Philadelphia (08/21/14)

The Federal Reserve Bank of Philadelphia’s August Business Outlook Survey suggests that the region’s manufacturing sector is continuing to grow. The diffusion index of current general activity increased to 28.0 in August from 23.9 in July. The index has increased for three consecutive months and is at its highest reading since March 2011.

The current indicators for labor market conditions suggest continued modest expansion in employment. The percentage of firms reporting increases in employment (25%) exceed the percentage reporting decreases (16%). The employment index remains positive for the 14th consecutive month.

Investor’s Business Daily (08/21/14) Jed Graham

Recent regional U.S. Federal Reserve Bank surveys indicate that the Affordable Care Act may be slowing the economic recovery, particularly in low-wage sectors. Eighteen percent of regional manufacturers told the Philadelphia Fed that they employ fewer workers due to the law, while 3.0% said they employ more workers. Eighteen percent said that they hired more part-time staff due to the law, and 1.5% have hired fewer part-time workers.

The New York Fed found that 22.0% of manufacturing and 17.0% of service firms have fewer employees because of the law, 20.0% in each sector have more part-time workers, and 5.0% have fewer part-time workers. The average workweek has dropped to 27.4 hours among private industries with average pay of $14.50 per hour, lower than during the recession, according to an analysis of U.S. Department of Labor data by Investor’s Business Daily.