The personal consumption expenditures index, the Federal Reserve's preferred inflation gauge, was up 0.3% in April from the prior month and 2.7% from a year earlier, according to the Commerce Department. Core PCE, which strips out the food and energy categories, rose 0.2% from the prior month and 2.8% year over year.

Distribution is changing rapidly and digital transformation efforts aimed at meeting evolving customer demands cannot rely solely on chief information officers and technologists, writes MDM's Tom Gale. Effective leadership and a proactive approach to technology and customer-centric strategies are crucial for driving growth and satisfaction, Gale writes, and the upcoming SHIFT 2024 conference will explore such themes, emphasizing the need for comprehensive business innovation and teamwork for success.

Electrical distributor Sonepar announced its subsidiary Northeast Electrical is acquiring Electric Supply Center and its six branches in Massachusetts and New Hampshire. This is Sonepar's third acquisition in May, and the deal with Electric Supply Center is expected to close by the end of June. "ESC's solid reputation and strong relationships with Boston contractors make this acquisition a great market expansion opportunity for NorthEast Electrical," said Sonepar Americas President Rob Taylor.

Despite sluggish 0.6% growth in 2024, Interact Analysis predicts a global manufacturing rebound in 2025, citing a strong performance by the US economy, easing inflation and lower borrowing costs as key drivers. A modest dip in growth is forecast for 2026, highlighted by concerns about the performance of the Chinese economy potentially dragging on global output.

US tariffs on goods from China, possible labor strikes in the US and Canada and Mideast turmoil are contributing to rising shipping rates as shippers try to stay ahead of world events and seasonal shopping. Weather delays and port congestion complicate maxed-out container capacity, reminding industry observers of the supply chain disruptions from the pandemic.

Service businesses should implement strategic balance, focus on strengths, look for synergy and weigh the context for AI, write experts David Cohen, Christopher Meyer and Sudhir Nair. "By following these guidelines, service firms can navigate the complexities of integrating AI into their operations, leveraging the best of all worlds to meet their clients' needs effectively and sustainably," they write.

Tools such as AI are only valuable if salespeople understand the background for the tasks and how to perform without the assistance of the tools, advises David Brock, a sales expert. "While these tools should expand our capability to think and execute in meaningful ways, instead we are outsourcing our ability to think, reason and engage," Brock writes.

Most regions in the US have experienced a "slight or modest" growth rate since early April, but companies have become more downbeat about the future as consumers have shown increased price sensitivity, according to the Federal Reserve's Beige Book. "Overall outlooks grew somewhat more pessimistic amid reports of rising uncertainty and greater downside risk," the report said.

Vanguard reports that the demand for low-earners has stayed strong. In March, the number of people hired for less than $55,000 a year increased by 1.5%, while the number of workers earning $102,000 or less declined by 0.5%.

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