Economy
Richmond Fed Manufacturing Index Plummets in August
Written by Sandy Williams
August 23, 2016
Manufacturing activity in the Fifth District was weaker in August according to the most recent survey by The Federal Reserve Bank of Richmond.
The composite manufacturing index for August plummeted to -11 after July’s reading of +10. Shipments fell sharply losing 21 points for an index reading of -14, while the new orders index plunged 35 points to -20. Backlogs dropped to -21 from 1.0 in July. The indices took a similar dive in June before bouncing back last month.
Employment was essentially unchanged from July gaining one point for a positive reading of 7.
Capacity utilization and vendor lead times both fell in August. Inventories of finished goods and raw materials both increased during the month. Prices for raw materials rose slightly faster this month while finished good prices rose at a slower pace.
Manufacturers expect business conditions to improve in the next six months with stronger orders and shipments and improved capacity utilization. Raw material price are expected to remain steady but selling prices to rise faster. An uptick in hiring is anticipated.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.
Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.
Metalforming market sentiment takes a dive in September: PMA
Metalforming manufacturers anticipate a decrease in near-term conditions, according to the Precision Metalforming Association's (PMA) Business Conditions Report for September.
AIA: Architecture firms still under pressure
Architecture firms reported a modest improvement in billings through August, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.