Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Axios on your phone

Get breaking news and scoops on the go with the Axios app.

Download for free.

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

llustration: Sarah Grillo/Axios

Manufacturing growth isn't slowing down.

Why it matters: Reopening means people are spending more on going out, which means service businesses need more goods to accommodate — even as supply chains remain backed up and labor shortages persist.

Driving the news: Manufacturing activity in May rose half a percentage point from April to 61.2%, according to the Manufacturing Purchasing Managers Index (PMI) published Monday.

  • The monthly supply chain survey showed that new orders continue to grow, while order backlogs, empty shelves and production lead times remain at record levels.
  • The Institute for Supply Management (ISM) reported Thursday that business activities for services reached another all-time high in May.

What they're saying: "People are spending more money on services, but that doesn’t take money away from manufacturing," Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee tells Axios.

  • There will be at least a six-month overlap where both the services and manufacturing sectors experience growth — well into the first quarter of next year, and likely through the first half of next year, Fiore says.

What to watch: High manufacturing prices and the worker shortage should start to ease soon.

  • Manufacturing prices are "way outside" the normal range, Fiore says, but he thinks they are close to or at the peak.
  • That's because he expects the labor shortage to end as states end supplemental unemployment benefits in June and September, and parents can send kids to day camp.
  • At every level of the supply chain, "it’s a labor, labor, labor, issue," says Fiore.

The bottom line: Manufacturers are feeling good right now.

  • Optimism on the panel is now more than threefold compared to April — 36 positive comments for every cautious one, versus an 11-to-1 ratio.

Go deeper

Ina Fried, author of Login
Jun 2, 2021 - Technology

Taiwan chip giant starts work on Arizona plant as global shortage continues

Illustration: Aïda Amer/Axios

Chipmaker Taiwan Semiconductor Manufacturing has started work on a $12 billion semiconductor manufacturing plant in Arizona. The move is part of what's expected to be a flurry of new U.S. construction due to a global shortage, combined with the prospect of government subsidies.

Why it matters: Computer chips are seen as vital for both national security and economic prosperity. The U.S., once responsible for 36% of global output, now accounts for only a third of that.

3,000 unruly passenger reports made to FAA this year

Photo: Stefani Reynolds/Bloomberg via Getty Images

Airlines have reported some 3,000 cases of unruly behavior by passengers to the Federal Aviation Administration this year — including 2,300 for refusing to comply with face mask mandates, the FAA announced Monday.

Why it matters: Passenger numbers remain below pre-pandemic levels. But the FAA is investigating the highest number of suspected federal law violations since it began recording unruly passenger incidents in 1995, per ABC News.

House panel to investigate Trump-era DOJ data seizures

Photo: James Devaney via Getty Images

The House Judiciary Committee will launch a formal probe into the Trump-era Justice Department's seizure of data from devices belonging to members of Congress, their aides, journalists and then-White House counsel, panel chair Jerry Nadler (D-N.Y.) announced Monday.

Why it matters: Though it's so far unclear if the cases are related, they raise "serious constitutional and separation of power concerns," Nadler said in a statement.