Research >> Economics
Richmond Fed's Current Activity Index gained 5 points to a reading of -3
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Manufacturing activity remained soft in April, according to the most recent survey by the Federal Reserve Bank of Richmond. Shipments, order backlogs, and the volume of new orders declined, although at a slower pace compared to last month. Manufacturing employment grew mildly, while the average workweek increased and wages rose slightly.
Manufacturers looked for better business conditions in the next six months. Survey participants expected faster growth in shipments and in the volume of new orders in the six months ahead. Producers also looked for increased capacity utilization and anticipated rising backlogs. Expectations were for somewhat longer vendor lead times.
Survey participants planned more hiring, along with moderate growth in wages and a pickup in the average workweek during the next six months.
Prices of finished goods rose more rapidly in April compared to last month. Additionally, prices of raw materials grew slightly faster than a month ago. Firms looked for faster growth in prices paid and prices received over the next six months, although their outlook was below March’s expectations.
Overall, manufacturing conditions remained soft in April. The composite index for manufacturing moved to a reading of −3 following last month's reading of −8. The index for shipments and the index for new orders gained seven points in April, although both indicators finished at only −6. Manufacturing employment grew mildly this month. The indicator gained one point, ending at a reading of 7.
The indicator for vendor lead time remained negative. That gauge moved up three points to a reading of −6. Capacity utilization remained soft. The index moved up three points ending at −4. The index for backlog of new orders gained four points, finishing at a reading of −8. Finished goods inventories rose at a slower pace than a month ago. The index lost seven points, ending at 18.
Additionally, raw materials inventories increased at a slower rate compared to last month. That gauge moved to 19 from 25.
Posted: April 28, 2015 Tuesday 10:00 AM