Economy
Richmond Fed Shows Weak Manufacturing, Negative Jobs Trend
Published:
Last Updated:
The Federal Reserve Bank of Richmond is out with its August report on manufacturing activity in the central Atlantic region. The report is a negative, but the Richmond Fed also noted that the contraction was at “a less pronounced rate this month, after deteriorating in July.” The seasonally adjusted survey reviewed activity and higher shipments, while a weakening was seen in employment with the weakness in new orders having moderated somewhat.
The index reading was -9 in August versus -17 in July, with shipments rising to +1 from -23, new order volumes of -20 versus -25 and backlog at -25 versus -27.
All employment components fell in August versus July: number of employees was -5 versus +1, average work week was -11 versus -7 and wages came in at +3 versus +9.
Order backlogs, capacity utilization and delivery times remained negative but were said to be improved from July readings. Finished goods inventories grew at a slightly slower pace, while growth in raw materials was nearly unchanged.
The outlook was fairly in-line with a prior report for the next six months anticipating steady growth in shipments, new orders and backlogs in the months ahead. The good news is that the firms surveyed also showed that capacity utilization is expected to grow more quickly.
JON C. OGG
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.