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Richmond Fed's Current Activity Index from 20 to 24 in August
Fifth District manufacturing activity expanded in August, according to results of the most recent survey from the Federal Reserve Bank of Richmond. The composite index rose from 20 in July to 24 in August, as all three components (shipments, new orders, and employment) increased. Respondents remained optimistic in August, expecting growth to continue in the coming months.
Employment and wages continued to rise, yet manufacturing firms continued to struggle to find workers with the skills they needed, as this indicator dropped to −17, its lowest value on record. Firms expect this struggle to continue in the next six months but anticipate sustained employment growth as well.
Respondents reported slower growth in both prices paid and prices received in August as the rise in prices paid continued to outpace growth of prices received. However, firms expect this gap to narrow in coming months, anticipating further slowing of growth in prices paid but accelerated growth of prices received.
Posted: August 28, 2018 Tuesday 10:00 AM