Research >> Economics
Richmond Fed's Current Activity edged down to 3 in October 2023
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Fifth District manufacturing activity changed little in October, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite manufacturing index edged down from 5 in September to 3 in October. Of its three component indexes, shipments edged up from 7 to 9, new orders fell from 3 to −4, and employment remained at 7. Although the level of the composite index was not very high, it was positive for only the second month since the spring of 2022.
Firms were not optimistic about local business conditions, however, as the index fell from 0 in September to −9 in October. The index for future local business conditions also fell, declining from 6 in September to −3 in October.
Most firms continued to report declining backlogs and vendor lead time as these indexes both remained negative. Meanwhile, two of the three spending indexes decreased.
The average growth rates of prices paid and prices received decreased in October, with both indexes falling below firms' expected price growth for the year ahead, for the first time since December of 2020.
Posted: October 24, 2023 Tuesday 10:00 AM