U.S. Mid-Atlantic Factory Activity Contracted Again in June -- Richmond Fed
By Maria Martinez
Factory activity in the U.S. central Atlantic region contracted
in June for the second consecutive month as demand faltered,
according to a survey from the Federal Reserve Bank of Richmond
The Fifth District Survey of Manufacturing Activity's index
decreased to minus 19 in June from minus nine in May, posting the
lowest reading since May 2020. Economists polled by The Wall Street
Journal expected the indicator to come in at minus five.
The index signals that factory activity declined over the month,
as a negative reading indicates contraction.
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 dropped further into negative territory: new orders and
The new orders index declined to minus 38 in June from minus 16
in May, while the shipments index fell to minus 29 from minus 14
the previous month, pointing to weakening demand for goods.
The employment index rose to 23 from eight. The wage index
remained elevated, despite a minor downward shift, indicating that
a large share of firms continue to report increasing wages.
On a positive note, there was some indication of supply-chain
improvement as the indexes for vendor lead time and order backlogs
both decreased in June from record highs earlier in the year, the
Richmond Fed said.
The average growth rate of prices paid decreased somewhat in
June. However, firms reported higher average growth in prices
received in June.
Manufacturers in the area turned more pessimistic about business
conditions in the next six months, with the index gauging
short-term expectations falling to minus 19 in June from minus 13
in May, the Richmond Fed said.
Write to Maria Martinez at email@example.com
(END) Dow Jones Newswires
June 28, 2022 10:31 ET (14:31 GMT)
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