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Richmond Fed's Current Activity Index rose from 0 to 10 in July
Manufacturing in the Fifth District showed signs of recovery in July, according to the most recent survey from the Richmond Fed. The composite index rose from 0 in June to 10 in July, its first positive reading since March, buoyed by increases in all three components. The indexes for shipments and new orders suggested expansion, while the third component index—employment— remained slightly negative. The local business conditions index rose further, suggesting some improvement in sentiment. Survey respondents were optimistic that conditions would improve in the next six months.
Survey results suggest that some firms saw continued decreases in employment in July, as this index remained negative, despite reaching its highest value since February. Many firms also reported increased wages. Respondents expected employment and wages to rise in the coming months.
On average, survey respondents saw decreases in the growth rates of both prices paid and prices received but expected growth to rise in the near future.
Posted: July 28, 2020 Tuesday 10:00 AM