Mid-Atlantic Manufacturing Activity Declines But Remains Positive in November, Survey Shows--Richmond Fed
By Maria Martinez
Manufacturing activity across the central Atlantic region of the
U.S. remained broadly positive in November, as the composite index
declined but continued in expansionary territory, data from a
survey from the Federal Reserve Bank of Richmond showed
The Fifth District Survey of Manufacturing Activity's composite
index came in at 15 in November, down from the 29 reading
registered in October. The indicator compares with FactSet's
forecast of 19.
The indicator 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.
November's reading is the first decline after six consecutive
months of improvement for the index, which plunged to a record low
of minus 53 in April amid the lockdown to contain the spread of the
Despite the decline, all three components of the index--new
orders, shipments and employment--had positive readings in
Volume of new orders declined to 12 from 32 a month earlier, and
shipments fell to 20 from 30 in October.
Employment fell to 13 in November from 23 in October. The survey
reflected higher employment among participants in November and
suggested several manufacturers raised wages over the month, the
report said. However, firms struggled to find workers with the
Survey results also reflected improvement in local business
conditions, but the spending indexes softened somewhat. Respondents
were optimistic that conditions would continue to improve in the
next six months, the Richmond Fed said.
Write to Maria Martinez at email@example.com
(END) Dow Jones Newswires
November 24, 2020 10:30 ET (15:30 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.