Richmond Fed Shows Weak Manufacturing, Negative Jobs Trend

The index reading was -9 in August versus -17 in July, with shipments rising to +1 from -23, new order volumes of -20 versus -25 and backlog at -25 versus -27.

All employment components fell in August versus July: number of employees was -5 versus +1, average work week was -11 versus -7 and wages came in at +3 versus +9.

Order backlogs, capacity utilization and delivery times remained negative but were said to be improved from July readings. Finished goods inventories grew at a slightly slower pace, while growth in raw materials was nearly unchanged.

The outlook was fairly in-line with a prior report for the next six months anticipating steady growth in shipments, new orders and backlogs in the months ahead. The good news is that the firms surveyed also showed that capacity utilization is expected to grow more quickly.

JON C. OGG