Research >> Economics
Richmond Fed's Current Activity declined to -9 in May 2022
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Many Fifth District manufacturing firms reported declines in activity in May, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite manufacturing index fell from 14 in April to −9 in May, as two of the three components of the index turned negative: the indexes for shipments and volume of new orders declined from 6 in April to −16 and −15 in May, respectively. The third component, the employment index, remained positive at 8 but fell from 22 in April. Additionally, the local business conditions index continued its decline to −16 in May, from −10 in April. Firms are also less optimistic about conditions in the next six months as the index decreased to −13 in May from −1 in April.
On a positive note, there was some indication of supply chain improvement as the indexes for vendor lead time and order backlogs both decreased in May from record highs earlier in the year. In addition, all three spending indexes increased in May. The wage index also remained elevated, indicating that a large share of firms continue to report increasing wages.
The average growth rate of prices paid increased notably in May. Firms also reported higher average growth in prices received in May.
Posted: May 24, 2022 Tuesday 10:00 AM