Economy
Richmond Fed Says Manufacturing Improved in August
Written by Sandy Williams
August 26, 2014
Manufacturing activity continued to improve in the Fifth District in August, according to the survey of manufacturing activity conducted by the Federal Reserve Bank of Richmond.
The composite index rose to 12 for its highest reading since March 2011. Shipments gained 7 points advancing to 10 while new orders gained 8 points registering 13. Employment gains were slower in July dipping two points to a reading of 11.
The backlog index increased to a reading of 15 as vendor lead times lengthened. Finished goods inventories rose four points to a reading of 16. Raw material inventories increased at a slower rate with an index reading of 17 compared to 21 in June.
Raw material prices advanced more slowly to an annualized rate of 1.39 percent from 1.99 percent the previous month. Finished goods prices rose at an annualized rate of 0.76 percent compared to July’s rate of 0.99 percent.
In the outlook for the next six months, manufacturers said they anticipate more robust conditions. The outlook index jumped 14 points to 29. Capital spending is expected to grow at a faster rate and capacity utilization to improve. Both input and finished goods prices are expected to increase over the next six months.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.