Richmond Fed Manufacturing: Weakened Growth In December
Today the Richmond Fed Manufacturing Composite Index decreased to -8 for the month of December, down from last month's 14. Investing.com had forecast 16. Because of the highly volatile nature of this index, we include a 3-month moving average to facilitate the identification of trends, now at 7.0, which indicates expansion. The complete data series behind today's Richmond Fed manufacturing report, which dates from November 1993, is available here.
Here is a snapshot of the complete Richmond Fed Manufacturing Composite series.
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Here is the latest Richmond Fed manufacturing overview.
Fifth District manufacturing activity weakened in December, according to the latest survey from the Richmond Fed. The composite index dropped from 14 in November to −8 in December, weighed down by drops in the indexes for new orders and shipments. At −25, the shipments index was its lowest reading since April 2009. However, the third component, the index for employment, rose. Respondents indicated a deterioration in local business conditions, as this index fell to −25, its lowest reading on record, but most firms were optimistic that conditions would improve.
Survey results suggested employment growth among many manufacturing firms in December, but firms continued to struggle to find workers with the necessary skills. Respondents expected this problem to continue in the coming months but anticipated continued employment growth as well.
Both prices paid and prices received by manufacturing firms grew in December. Growth of prices paid continued to outpace growth of prices received, although the gap narrowed slightly. Firms expected these trends to persist in the coming months. Link to Report
Here is a somewhat closer look at the index since the turn of the century.
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Is today's Richmond composite a clue of what to expect in the next PMI composite? We'll find out when the next ISM Manufacturing survey is released (below).
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Let's compare all five Regional Manufacturing indicators. Here is a three-month moving average overlay of each since 2001 (for those with data).
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Here is the same chart including the average of the five.
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