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Growth in U.S. manufacturing picked up in May, even as supply chain problems persist and businesses continue to struggle to find workers, the Associated Press reported. The Institute for Supply Management, a trade group of purchasing managers, said Tuesday that its index of manufacturing activity rose in May to a reading of 61.2 in May from 60.7 in April. Any reading above 50 indicates manufacturing is expanding. May was the 12th consecutive month manufacturing has grown after contracting in April 2020, when coronavirus fears triggered business shutdowns across the country. With million of Americans vaccinated and most of the U.S. back to business as usual, the manufacturing sector is struggling to keep up with demand, which is generally considered not a bad problem to have. Shortages of raw materials including lumber, metals and plastics, are choking the supply chain, making it difficult for manufacturers to make and deliver products on time. Companies are also having trouble filling positions, causing further delays in production and delivery. “Worker absenteeism, short-term shutdowns due to part shortages, and difficulties in filling open positions continue to be issues that limit manufacturing-growth potential,” said Timothy Fiore, chair of the ISM manufacturing survey committee. An overwhelming majority of businesses surveyed for the report said they are hiring or attempting to hire workers, with more than half of them saying they’ve experienced difficulties in doing so, as the broader employment situation has rapidly improved in the U.S. Layoffs have declined for four straight weeks and with demand at high levels across virtually all industries, those looking for work have more options than they have had in a long time.

More than 11 million Americans are behind on their rent and many could be pushed from their homes when the national eviction ban expires in June, CNBC.com reported. The Centers for Disease Control and Prevention’s eviction moratorium, which has been in effect since September, will lift on June 30. Although the policy has been far from perfect at keeping renters housed, it’s reduced the normal number of eviction filings over the same time period by at least a half, according to Peter Hepburn, an assistant professor of Sociology at Rutgers University-Newark and research fellow at The Eviction Lab. Experts say the number of evictions could skyrocket when the ban lifts. Around 15% of adult renters are not current on their housing payments, according to an analysis by The Center on Budget and Policy Priorities. The CDC’s eviction moratorium has faced numerous legal challenges and landlords have criticized the policy, saying they can’t afford to house people for free or shoulder the country’s massive rental arrears, which could be as high as $70 billion. Yet housing advocates say the ban is lifting at a terrible time for both property owners and tenants, with states still scrambling to distribute the $45 billion in rental assistance allocated by Congress to address the crisis. “We need to let this moratorium stay in place until we spend all this money,” said Mark Melton, a lawyer who has been representing tenants facing eviction pro bono in Dallas. “If you bail out the renter, that means you bailed out the landlord,” he said.

Americans extended a spending binge in April as they continue to catch up on activities they held off on during the pandemic, propelling a broad economic recovery, the Wall Street Journal reported. After months of buying goods, many households are now shelling out more for services, dining out, traveling, and even visiting the spa. Consumer spending rose by 0.5% in April the Commerce Department said Friday—a solid increase, though slower than the 4.7% gain the prior month, which was fueled in part by federal stimulus checks. The burst in spending is the biggest reason that economists are projecting gross domestic product to jump at an annual rate of about 10% this spring. It is being fueled by rising vaccination rates, falling business restrictions and ample household savings, much of it from the federal government. Friday’s report showed a 13.1% drop in household income—a decline that is likely temporary, and due to earlier stimulus efforts by the government. Income had risen sharply in March as the government sent most households $1,400 checks as part of Covid-19 stimulus efforts. Despite the drop, Americans are sitting on a huge pile of cash. Households have saved about $2 trillion more than they would have absent the pandemic and federal relief efforts in response to it, according to Morgan Stanley.