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Richmond Fed's Current Activity Index inched down to 11 in November 2021
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the Federal Reserve Bank of Richmond. The composite index inched down from 12 in October to 11 in November but remained in expansionary territory. All three component indexes — shipments, new orders, and employment — continued to reflect growth. However, many firms reported that inventories were too low, as the index for finished goods inventories reached its lowest value on record. Meanwhile, vendor lead times and backlogs of orders continued to grow. Manufacturers remained optimistic that business conditions would improve in the coming months.
Survey results suggested that many firms increased employment and wages in November, but they struggled to find workers with the necessary skills. Survey respondents expected these trends to continue in the next six months.
The average growth rates of both prices paid and prices received by survey respondents declined in November but remained high. Survey participants expected price growth to slow further over the next year.
Posted: November 23, 2021 Tuesday 10:00 AM