Research >> Economics
Richmond Fed's Current Activity Index rose to 22 in June 2021
|
Fifth District manufacturing activity expanded in June, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite index rose from 18 in May to 22 in June. This was driven by an increase in the new orders index, while the other two component indexes — shipments and employment — also remained in expansionary territory. Manufacturers continued to report shrinking inventories, growing order backlogs, and lengthening vendor lead times. Overall, respondents saw improvement in local business conditions and were optimistic that conditions would continue to improve in the coming months.
Survey results indicated that many manufacturers increased employment and wages in June and expected further increases in the next six months. Firms struggled to find workers with the necessary skills, a difficulty that manufacturers expected to continue.
The average growth rates of both prices paid and prices received by survey participants declined slightly but remained elevated in June. Contacts expected price growth to slow in the near future.
Posted: June 22, 2021 Tuesday 10:00 AM