Richmond Fed Still Signals Recession Is Ending
In August, manufacturing activity in the central Atlantic region expanded for the fourth straight month, according to the Richmond Fed's latest survey (see chart above). Looking at the main components of activity, shipments expanded further, while new orders grew at a slightly slower rate and employment steadied. Correspondingly, solid activity was evident in other broad indicators. Capacity utilization continued to strengthen notably, while backlogs and vendor delivery times matched July's pace. In addition, manufacturers reported considerably quicker growth in raw materials inventories, but noted slower growth in finished goods materials inventories.
MP: Although the Current Conditions Index remained unchanged, the Richmond Fed is still reporting an expansion of manufacturing activity in August for the fourth consecutive month.
Originally posted at Carpe Diem.