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
Second steel derivatives S232 inclusion window opens, business community voices concern
The US Department of Commerce announced that its second window for submitting applications for the inclusion of derivative steel and aluminum products in Section 232 tariffs is now open, according to the US Federal Register. September’s Inclusion Window Sept. 15 through Sept. 29, applicants can email requests for inclusions to the Defense Industrial Base Programs. The first […]
Steel Summit: ITR economist urges execs to prepare for growth, not recession
If the steel industry professionals who made it to the very final presentation of this year’s SMU Steel Summit were expecting another round of cautious forecasting, they were in for a surprise. Because what they got was a wake-up call.
ISM: Manufacturing growth remained down in August
US manufacturing activity remained muted in August despite a marginal gain from July's recent low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Steel Summit: Dr. Basu blames tariffs for riskier path ahead
Steel executives packed the main conference hall of the 2025 SMU Steel Summit on Tuesday, Aug. 26, to hear economist Dr. Anirban Basu lay out his blunt view of tariffs, inflation, and demand.
Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.