Research >> Economics
Richmond Fed's Current Activity declined to -19 in June 2022
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Fifth District manufacturing firms reported another decline in activity in June, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite manufacturing index fell from −9 in May to −19 in June, as two of its three component indexes dropped further into negative territory. The indexes for shipments and volume of new orders declined from −14 and −16 in May to −29 and −38 in June, respectively. The third component, the employment index, rose to 23 from 8 in May.
The wage index also remained elevated, despite a minor downward shift, indicating that a large share of firms continue to report increasing wages. Additionally, the local business conditions index continued to slide in June, falling to −32. Firms are also less optimistic about conditions in the next six months as the expectations index decreased to −19 in June from −13 in May.
On a positive note, there was some indication of supply chain relief as the indexes for vendor lead time and order backlogs both decreased in June from record highs earlier in the year. In addition, all three spending indexes decreased in June.
The average growth rate of prices paid decreased somewhat in June. However, firms reported higher average growth in prices received in June.
Posted: June 28, 2022 Tuesday 10:00 AM