Research >> Economics
Richmond Fed's Current Activity improved to 5 in September 2023
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Fifth District manufacturing activity improved in September, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite manufacturing index increased from −7 in August to 5 in September. Each of its three component indexes — shipments, new orders, and employment — increased. The shipments index improved from −5 in August to 7 in September, the new orders index increased from −11 to 3, and the employment index rose from −3 to 7. Although the level of the composite index was not very high, this was the first positive reading of the index since the spring of 2022.
Firms were not much more optimistic about local business conditions, however, as the index edged down two points to 0 in September. The index for future local business conditions fell slightly, but remained positive, declining from 10 in August to 6 in September.
Although the orders backlogs index increased notably in September, most firms continued to report declining backlogs and vendor lead time as these indexes both remained negative. Meanwhile, two of the three spending indexes increased.
The average growth rates of prices paid increased somewhat in September, while the average growth rate of prices received edged downward. Firms continued to expect both to moderate in the coming year.
Posted: September 26, 2023 Tuesday 10:00 AM