Contraction in U.S. Mid-Atlantic Factory Activity Slowed in March
March 28 2023 - 10:51AM
Dow Jones News
By Xavier Fontdegloria
Manufacturing activity in the U.S. central atlantic region
continued to contract in March, albeit at a softer pace compared
with the previous month as demand remained subdued.
The Fifth District Survey of Manufacturing Activity's index rose
to minus 5 in March from minus 16 in February, which marked the
lowest level since the onset of the Covid-19 pandemic, according to
data from the Federal Reserve Bank of Richmond released
Tuesday.
The reading beats economists' consensus estimate of minus 10 in
a poll by The Wall Street Journal.
The indicator suggests that activity among goods-producers in
the region contracted at a slower rate compared with the previous
month, as it came in closer to the no-change threshold of zero. The
survey has signaled declining or stagnating factory activity since
May 2022.
The index is compiled by surveying manufacturing firms across
the Fifth Federal Reserve District, which includes the District of
Columbia, Maryland, North Carolina, South Carolina, Virginia and
most of West Virginia.
Two of the three component indexes which form the composite
indicator--new orders and employment--remained in contraction
territory in March, while the shipments index swung to expansion,
driving the increase of the headline indicator.
The shipments index rose to plus 2 from minus 15, signaling a
slight increase in shipments. Another demand-related indicator, the
new orders index, remained negative but improved to minus 11 from
minus 24, suggesting that orders fell at a softer pace than in
February.
The employment index rose slightly to minus 5 from minus 7 a
month earlier, pointing to slight job losses among
manufacturers.
Firms continued to report easing of supply-chain bottlenecks,
while inflation pressures eased somewhat over the month, the
Richmond Fed said.
Goods producers remained pessimistic about local business
conditions in March, while they also turned slightly more downbeat
when assessing their outlook for the next six months, data from the
survey showed.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
March 28, 2023 10:36 ET (14:36 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.