U.S. Mid-Atlantic Factory Activity Lost Momentum in January -- Richmond Fed
By Xavier Fontdegloria
Manufacturing activity in the U.S. central Atlantic region
expanded in January at the slowest pace since September, according
to a survey from the Federal Reserve Bank of Richmond released
The Fifth District Survey of Manufacturing Activity's composite
index fell to eight in January from 16 in December, missing
economists' forecast of 15 in a poll carried out by The Wall Street
Journal. A positive reading suggests that factory activity
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--fell, while the shipments
index rose slightly, the Richmond Fed said.
The new orders index fell to six from 17 the previous month, and
the employment index declined to four from 19. The indexes signal
that both new orders and employment grew slightly.
"Reported hiring moderated in January as fewer manufacturing
firms increased employment compared to December," the Richmond Fed
said. "Firms continued to report challenges finding the skills that
The shipments index increased slightly to 14 from 12 in
The backlog of orders index dropped significantly in January,
signaling that supply-chain bottlenecks could be easing. However,
the index for vendor lead time edged up to 50 from 35 the previous
month and inventories indexes remained near historic lows.
The average growth rate of prices paid and prices received
increased in January, the report said.
Manufacturers in the region were optimistic about the short-term
outlook, but less so than in December. The future indexes for
shipments, new orders and employment all fell compared with the
previous month, but remained well into expansion territory.
Write to Xavier Fontdegloria at email@example.com
(END) Dow Jones Newswires
January 25, 2022 10:51 ET (15:51 GMT)
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