U.S. Mid-Atlantic Manufacturing Activity Strengthened in October -- Richmond Fed
October 26 2021 - 10:47AM
Dow Jones News
By Maria Martinez
Factory activity in the central Atlantic region of the U.S.
expanded in October, signaling that business conditions improved,
data from a survey compiled by the Federal Reserve Bank of Richmond
showed Tuesday.
The Fifth District Survey of Manufacturing Activity's composite
index rose to 12 in October from minus three in September.
Economists polled by The Wall Street Journal expected the indicator
to come in at 5.
The index is compiled by surveying manufacturing firms across
the Fifth Federal Reserve District, which encompasses the District
of Columbia, Maryland, North Carolina, South Carolina, Virginia and
most of West Virginia. Positive readings signal expansion, while
negative readings indicate contraction.
The three component indexes which form the composite
indicator--shipments, employment and new orders--increased in
October compared with the prior month, the Richmond Fed said.
The shipments index rose to one in October from minus one the
previous month, the volume of new orders index increased to 10 from
minus 19, and the employment index increased to 27 from 20 the
prior month.
Survey results indicate that many manufacturing firms increased
employment and wages in October but finding workers with the
necessary skills was difficult. Respondents expected this challenge
to continue, the Richmond Fed said.
Manufacturers continued to see low inventories. Backlogs of
orders and lead times indexes continued to grow, as the vendor lead
time index hit its highest value on record, the report said.
Goods producers in the area were optimistic that conditions will
improve in the coming months but expected inventories to remain low
for some time. The future index for shipments decreased to 33 from
40 and expectations for employment fell to 45 from 52, while the
future new orders index rose to 27 from 24.
Write to Maria Martinez at maria.martinez@wsj.com
(END) Dow Jones Newswires
October 26, 2021 10:32 ET (14:32 GMT)
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