Importance Score: 35 / 100 🔵
Richmond Fed Manufacturing Activity Declines in April
RICHMOND, Va. – The latest manufacturing survey from the Federal Reserve Bank of Richmond indicated a contraction in regional factory activity for April. Released on Tuesday, the report provides insights into key economic indicators within the Fifth Federal Reserve District. The April composite index registered a negative reading, pointing towards a decrease in overall manufacturing conditions. The details of the survey are seasonally adjusted and presented below.
Richmond Fed Manufacturing Survey – April Data
Key findings from the April survey compared to the previous months:
| MANUFACTURING SURVEY | April | March | Feb | 3-mo Avg |
|---|---|---|---|---|
| Composite index | -13 | -4 | 6 | -4 |
| Shipments | -17 | -7 | 12 | -4 |
| New Orders | -15 | -4 | 0 | -6 |
| Backlog Orders | -24 | -1 | -6 | -10 |
| Capacity Utilization | -10 | -11 | -6 | -9 |
| Vendor Lead Time | 1 | 12 | 2 | 5 |
| Number of Employees | -5 | -1 | 9 | 1 |
| Average Workweek | n/a | n/a | n/a | n/a |
| Wages | 24 | 19 | 21 | 21 |
| Prices Paid* | 5.37 | 3.75 | 2.23 | 3.78 |
| Prices Received* | 2.65 | 2.34 | 1.62 | 2.20 |
| Finished goods inventories | 20 | 3 | 5 | 9 |
| Raw materials inventories | 23 | 8 | 17 | 16 |
*Percentage change in prices from the prior month (annualized).
Understanding the Richmond Fed Manufacturing Index
Key Components
The composite manufacturing index from the Richmond Fed is calculated using data from three core components:
- Shipments: Measures the volume of manufacturing shipments.
- New Orders: Tracks the level of new orders received by manufacturers.
- Employment: Reflects changes in manufacturing employment levels.
Index Interpretation
The index values serve as indicators of manufacturing sector performance:
- Values above zero: Suggest expansion within the manufacturing sector.
- Values below zero: Indicate contraction in manufacturing activity.
Geographic Coverage
The Richmond Fed manufacturing index encompasses the Fifth Federal Reserve District, a significant economic region. This district includes:
- District of Columbia
- Maryland
- Virginia
- North Carolina
- South Carolina
- Most of West Virginia
This region accounts for approximately 9 percent of the total Gross Domestic Product of the United States, highlighting the index’s importance as a gauge of national economic conditions.