Richmond Fed Reports Drop in Regional Manufacturing in Feb.

    

   CRANBURY, N.J. (DTN) -- Federal Reserve Bank of Richmond reported a decline 
in the region's manufacturing activity in February, with its composite index 
dropping to minus 2 from 20 in January. Markets expected a reading of 10.

   "All three components of the composite index --- shipments, new orders, and 
employment --- moved lower from January," said the Richmond Fed. "Firms also 
reported a decrease in backlog of orders."

   Still, the bank suggested the softening was transitory, finding local 
business conditions in the Fifth District remaining positive, and manufacturers 
were "optimistic" activity would pick up in the coming months.

   Employment and wages maintained their growth trend in February, although 
companies "continued to struggle to find workers with the necessary skills, as 
this index dropped to -35. Respondents expected this struggle to continue but 
employment and wages to grow in the next six months."

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