By Maria Martinez
Factory activity in the U.S. central Atlantic region improved but remained relatively flat in July, according to a survey from the Federal Reserve Bank of Richmond released Tuesday.
The Fifth District Survey of Manufacturing Activity’s index rose to 0 in July from minus 9 in June. Economists polled by The Wall Street Journal expected the indicator to come in at minus 10.
The index signals that factory activity remained flat over the month, while negative readings indicate a 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 improved sharply: shipments and new orders.
The shipments index rose to 7 in July from minus 17 in June, while the new orders index increased to minus 10 in July from minus 20 the previous month. The third component, the employment index, fell to 8 in July from 16 in June.
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 index for vendor lead time decreased again in July and the indexes for raw materials and finished goods inventories increased, the Richmond Fed said.
The average growth rate of prices paid and received decreased in July.
Manufacturers in the area turned more optimistic about business conditions in the next six months, with the index gauging short-term expectations increasing to minus 10 in July from minus 28 in June, the Richmond Fed said.
Write to Maria Martinez at [email protected]
(END) Dow Jones Newswires
July 26, 2022 10:33 ET (14:33 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
