Research >> Economics
Richmond Fed's latest survey decreased to -26
|
In October, the seasonally adjusted manufacturing index — our broadest measure of manufacturing activity — decreased to -26 from September's reading of -18. Manufacturing activity in the central Atlantic region contracted more sharply in October, according to the Richmond Fed's latest survey. The index of overall activity was pushed lower as shipments, new orders, and employment retreated further into negative territory. All other indicators suggested additional weakness. District contacts reported that orders backlogs and capacity utilization remained in negative territory and declined from their previous month's readings. Moreover, vendor delivery times turned negative, while inventories grew at a slightly quicker pace.
Looking forward, assessments of business prospects for the next six months were less optimistic in October. Contacts at firms anticipated slower growth in shipments, and negative growth in backlogs, capital expenditures and employment.
Survey assessments of prices were mixed in October. Raw materials prices grew at a slightly slower pace, while finished goods prices grew at a somewhat quicker pace. Looking ahead, respondents indicated that they expected price growth to advance a bit more quickly over the next six months.
Posted: October 28, 2008 Tuesday 11:06 AM