Richmond Fed Reports Drop in Regional Manufacturing in Feb
2/25 9:14 AM
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." (c) 2020 DTN. All rights reserved.
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