Research >> Economics
Richmond Fed's Current Activity deteriorated to -16 in February 2023
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Fifth District manufacturing firms reported deterioration in business conditions in February, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite manufacturing index decreased from −11 in January to -16 in February. Of its three component indexes, shipments saw the largest change, declining notably from −3 in January to −15 in February. The employment index declined from −3 to −7 in February, while the new orders index remained unchanged at −24.
Firms remained pessimistic about local business conditions, as the index remained at −13. However, the expectations index for future local business conditions increased notably and returned to positive territory for the first time since March 2022.
Businesses continued to see declines in backlogs and lead times as both indexes remained negative. However, the capacity utilization index fell notably from −7 in January to −17 in February.
The average growth rate of prices paid remained nearly unchanged, while the average growth rate of prices received decreased in February. Firms expect both to moderate over the next 12 months.
Posted: February 28, 2023 Tuesday 10:00 AM