Tuesday, July 23, 2019

Richmond Fed: "Fifth District Manufacturing Activity Weakened in July"

by Calculated Risk on 7/23/2019 01:47:00 PM

Earlier from the Richmond Fed: Fifth District Manufacturing Activity Weakened in July

Fifth District manufacturing activity weakened in July, according to the most recent survey from the Richmond Fed. The composite index fell from 2 in June to −12 in July, its lowest reading since January 2013, as all three components — shipments, new orders, and employment — registered declines. Backlogs of orders also fell, reaching a value of −26, its lowest reading since April 2009. Firms reported worsening local business conditions, as this index dropped from 7 to −18, its largest one-month drop on record. However, respondents were optimistic that conditions would improve in the coming months.

Survey results indicated that employment and the average workweek declined in July. However, wage growth continued among survey respondents. Firms continued to struggle to find workers with the necessary skills and expect that struggle to continue in the next six months.
emphasis added
This was a very weak report.