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Richmond Fed's Current Activity Index fell from 8 to −1 in November
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Fifth District manufacturing activity softened in November, according to the most recent survey from the Richmond Fed. The composite index fell from 8 in October to −1 in November, weighed down by negative readings for shipments and new orders, while the third component — employment — declined but remained positive. Manufacturing firms also reported a drop in backlog of orders, but the indicator for local business conditions held fairly steady. Survey respondents were optimistic that conditions would improve in the coming months.
Survey results suggested modest employment growth and rising wages in November. However, firms continued to struggle to find workers with the necessary skills. Respondents expected this struggle to persist and employment and wages to continue to grow in the near future.
The average growth rate of prices paid by manufacturing firms slowed in November, while that of prices received accelerated slightly, with the result that growth of prices received outpaced that of prices paid for the first time since September 2017. However, firms expected growth of prices paid to rise and prices received to fall in the next six months.
Posted: November 26, 2019 Tuesday 10:00 AM