BIG MISS: Richmond Fed Drops To -3

Alcoa aluminium

Photo: Sean Gallup/Getty Images

UPDATE:Manufacturing activity in the fifth district declined for the first time in six months, new data out of the Federal Reserve Bank of Richmond shows.

The key business activity index fell seven points to -3 in June, below expectations for a reading of 2. 

Most of sub-indices also logged declines, with shipments and new orders falling to -2, while employment retreated to 8.

However, expectations for the future “were generally more optimistic” the Fed said.

“The index of expected shipments moved up three points to 33, while expected orders held steady at 30,” the Fed wrote in a statement. “Backlogs increased three points to 16, and capacity utilization rose five points to 21.”

Below, key output from the report.

June Richmond Fed

Photo: Federal Reserve Bank of Richmond


The Federal Reserve Bank of Richmond will release a key gauge of manufacturing activity in the mid-Atlantic and South East, with expectations for a slight decline in outlook.

Economists polled by Bloomberg forecast the key business activity index will fall to 2 in June, from 4 a month earlier. A reading above zero indicates economic expansion.

The fifth federal district includes Virginia, Maryland, the Carolinas, the District of Columbia, and parts of West Virginia.

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