RICHMOND FED MISSES: FALLS TO 4

Construction Manufacturing Equipment Tractor Building

Photo: Christopher Furlong/Getty Images

UPDATE:

Manufacturing activity expanded at a more moderate pace in the fifth federal district, new data out of the Federal Reserve Bank of Richmond shows.

The headline index declined to 4 from 14 one month ago, marking the sixth month of expansion. A reading above zero indicates expansion.

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“In spite of the recent moderation in activity, assessments for business activity over the next six months remained generally positive since our last report,” the Fed said in a statement. “Contacts at more firms anticipated that shipments, new orders, backlogs, capacity utilization, and capital expenditures would continue to grow at a solid pace.”

The employment sub-index continued to show strength, improving to 16 from 10 one month ago, while the average work week surged to 11. Wages also continued to expand, however at a lower pace than in April.

Below, key output from the report.

Chart

Photo: Federal Reserve Bank of Richmond

ORIGINAL:

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 anticipate the index will fall to 11 in May, from 14 in April. A reading above zero indicates economic expansion.

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

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