Research >> Economics
Richmond Fed's Current Activity fell to −8 in August 2022
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Many Fifth District manufacturing firms reported slowdowns in August, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite manufacturing index fell from 0 in July to −8 in August, almost matching the June reading of −9. Two of its three component indexes tumbled: the indexes for shipments and volume of new orders slid from 7 and −10 in July to −8 and −20 in August, respectively. The third component, the employment index, rose to 11 from 8 in July.
The wage index remained elevated, despite a slight downward shift, indicating that a large but shrinking share of firms continues to report increasing wages. The local business conditions index edged downward slightly in August, moving from -13 to -14. Meanwhile, firms' expectations of conditions over the next six months stayed steady in August after marked improvement in July.
On the other hand, there was indication of further supply chain relief as the indexes for vendor lead time and backlog of orders decreased again in August, falling to −14 and −24.
The average growth rate of prices paid was virtually flat in August, while the average growth rate of prices received increased somewhat
Posted: August 23, 2022 Tuesday 10:00 AM