- Manufacturing index -17 vs. -7 expected and -10 prior.
- Services index 5 vs. -11 prior.
- Manufacturing shipments index -21 vs. -9 prior.
Fifth District manufacturing activity worsened in July, according to the
most recent survey from the Federal Reserve Bank of Richmond. The
composite manufacturing index decreased from −10 in June to −17 in July.
Of its three component indexes, shipments fell notably from −9 to −21,
new orders decreased from −16 to −23, and employment edged down from −2
to −5.
Firms
grew less optimistic about local business conditions, as the index fell
from −13 to −21. The index for future local business conditions edged
down from 9 to 7 in July. The future indexes for shipments and new
orders remained solidly in positive territory, suggesting that firms
continued to expect improvements in these areas over the next six
months.
The vendor lead time index increased into slightly
positive territory for only the second time in two years. Firms
continued to report declining backlogs in July as that index remained
negative.
The average growth rate of prices paid and prices
received decreased in July. Firms expected little change in price growth
over the next 12 months.
