Research >> Economics
Richmond Fed's Current Activity Index increased to 12 in October 2021
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Fifth District manufacturing activity strengthened in October, according to the most recent survey from the Richmond Fed. The composite index rose from −3 in September to 12 in October, as all three component indexes — shipments, new orders, and employment — increased. Backlogs of orders and lead times indexes continued to grow, as the vendor lead time index hit its highest value on record. Firms also reported that inventories of both finished goods and raw materials remained too low. Manufacturers were optimistic that conditions would improve in the coming months but expected inventories to remain low for some time.
Survey results indicate that many manufacturing firms increased employment and wages in October but finding workers with the necessary skills was difficult. Respondents expected this challenge to continue but employment and wages to grow further in the next six months.
The average growth rate of prices paid by survey participants decreased in October, while that of prices received increased. Respondents expected growth of both prices paid and prices received to slow over the next year.
Posted: October 26, 2021 Tuesday 10:00 AM