GDP increased at a 2.4% annualized rate in the second quarter, largely because of consumer spending, government spending and inventory growth. The rate was higher than expected and indicated widespread growth, with a 5.7% increase in gross private domestic investment, a 10.8% increase in equipment, a 9.7% increase in structures and a 2.5% increase in defense expenditures.
US durable goods orders jumped 4.7% in June, in large part due to a surge in Boeing passenger plane contracts. Without planes and care, orders were up a more muted 0.6%, but all major categories ticked upward and the increase comes on the heels of previous jumps in April and May.
The US goods trade deficit declined 4.4% in June to $87.8 billion, with capital goods and industrial supplies imports seeing the most significant declines, according to the Commerce Department. "Overall, trade flows have come off record levels and the latest data are signaling weaker demand for imports," said Rubeela Farooqi, chief US economist for High Frequency Economics.
Grainger posted $4.18 billion in second-quarter sales, a 9% increase compared with a year earlier and a 2.2% increase from the prior quarter. Grainger reported gross profit of $1.64 billion, up 14% year over year, along with $470 million in net profit, up 26.5% year over year, and a 39.3% gross margin.
Freight operators such as Kuehne + Nagel International are experiencing double-digital revenue declines and are focused on cost-cutting as retailers reduce product orders in response to consumer spending shifts. There are currently no clear signals of any air or sea peak shipping season in 2023, but DSV CEO Jens Bjørn Andersen says, "It's July, it's always depressing."
FMI -- the Food Industry Association -- has said that it is working to interpret and develop solutions for the FDA's Food Traceability Rule before it takes effect in 2026, but that many challenges must first be addressed. Implementing GS1 standards, which are the "most widely used system of standards in the world," can provide a common foundation for businesses and standardize record-keeping and communication, notes Ashley Eisenbeiser, FMI's senior director of food and product safety programs.
Companies that lag in using AI to improve supply chains will wind up at a competitive disadvantage, argues Padhu Raman of tech provider Osa Commerce. In this commentary, Raman notes that the clock is ticking: Gartner predicts more than three-quarters of supply chain apps will AI, advanced analytics and data science by 2026.
Adding "because" after a request, no matter how weak the reason, offers a far better chance of success, according to old research, and a few new verbal tactics can achieve similar results. Jonah Berger, a marketing professor at the Wharton School of the University of Pennsylvania, rounds up several in his new book, "Magic Words," such as the power of identity vs. action ("Fred is a runner" rather than "Fred goes running") to imply more of a commitment.
Clarity is one of the key rules in sales compensation, and providing documents with definitions, metrics, contract value and examples can help, writes business executive Gordon Daugherty, author of "Startup Success." Making the requirements simple, avoiding changes and not capping earnings are among Daugherty's other "golden rules of sales compensation."
Be judicious when giving negative feedback, because "who likes to be wrong? The ego gets bruised and people often start to question themselves," notes Shari Harley, author of "How to Say Anything to Anyone." If someone gives you too much feedback, regroup by asking, "What's the most important thing I should do?"
Yelling in the office often is a sign of toxic behavior and aggression, but some employees prefer it to its passive-aggressive cousin, and some leaders find it an occasionally useful motivational tool, says Cait Brumme, CEO of business accelerator MassChallenge. A few successful leaders have sometimes displayed volatile behavior in the office, but yelling should never cross into abusive territory.
