Research >> Economics
Richmond Fed's Current Activity Index rose from 10 to 18 in August
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Manufacturing activity in the Fifth District continued to strengthen in August, according to the most recent survey from the Richmond Fed. The composite index rose from 10 in July to 18 in August, as all three components — shipments, new orders, and employment — increased. The index for local business conditions also rose, and many firms reported increased capital expenditures. Manufacturers were optimistic that conditions would continue to improve.
Survey results suggested many Fifth District manufacturers saw increases in employment, wages, and the average workweek in August. However, firms struggled to find workers with the necessary skills, as this index fell from 3 in July to −21 in August, its largest one-month drop on record. Survey respondents expected employment and wages to rise and continued difficulty finding skills in the coming months.
The average growth rates of both prices paid and prices received by survey participants increased in August. Growth of prices paid continued to outpace that of prices received, and respondents expect the gap to widen in the next six months.
Posted: August 25, 2020 Tuesday 10:00 AM