Research >> Economics
Richmond Fed's Current Activity fell to -10 in October 2022
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Many Fifth District manufacturing firms reported weaker conditions in October, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite manufacturing index fell from 0 in September to −10 in October, dipping below its August level. Two of its three component indexes deteriorated notably: the indexes for shipments and volume of new orders fell from 14 and −11 in September to −3 and −22 in October, respectively. The third component, the employment index, remained unchanged at 0 in October, as hiring challenges persisted.
The wage index decreased slightly but remained elevated. The local business conditions index slid from −5 in September to −16 in October, with considerably more firms pessimistic about conditions over the next six months.
There was little indication of supply chain relief since August, as the indexes for vendor lead time and backlog of orders remained steady, although both have improved dramatically since earlier this year.
The average growth rate of prices paid and prices received both increased again in October, after moderating in September. Expectations for both over the next 12 months also increased slightly from September.
Posted: October 25, 2022 Tuesday 10:00 AM