Richmond Fed Index Declines Again in June

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Economic Update: Richmond Fed Index

The Richmond Fed Manufacturing Index, which is designed to indicate the health of the manufacturing sector in the district, fell in June to a reading of -3 from +4 in May and +14 in April.

The report states: “Manufacturing activity in the central Atlantic region softened in June, following six months of moderate expansion, according to the Richmond Fed's latest survey. Looking at the main components of activity, shipments edged into negative territory as growth in new orders experienced notable declines and employment grew at a rate well below May's pace. Most other indicators also suggested weakening activity. District contacts reported that capacity utilization and vendor lead-time turned negative, while growth in order backlogs exhibited marked weakness. Manufacturers reported that finished goods inventories grew at a much quicker pace, while raw materials were nearly unchanged.”

On the services sector, the survey of activity was summarized as follows: “Service sector revenues moved moderately higher in June, according to the latest survey by the Federal Reserve Bank of Richmond. Revenues accelerated at non-retail services firms and big-ticket sales posted solid gains at retail establishments. However, overall retail sales remained anemic and inventories rose as shopper traffic declined. Retailers downgraded their outlook for the rest of 2012, while non-retail services providers remained upbeat. In service sector labor markets, hiring softened overall, weighed down by weakness in retail hiring. Average wage growth strengthened.”

Other stories on the US Economy to review:

• Consumer Confidence Falls Again in June
  
• Case-Shiller Home Price Index Improves
  
• Chicago Fed National Activity Index Falls in May
  
• Existing Homes Sales Fall But Prices Rises
  
• LEI Rises in May: Points to "Muddle Through"
  
• Philly Fed Plunges in June
  
• Flash PMI in US Shows Manufacturing Growth Slowing
  
• Housing Starts Down But Permits Up Strong
  
• UofM's Consumer Sentiment also Weak
  
• Industrial Production and Capacity Utilization Below Expectations
  
• Empire Manufacturing Disappoints in June
  
• CPI Declines in May
  
• Business Inventories Above Expectations in April
  
• Retail Sales Fall Across Board in May
  
• PPI Shows Inflation Fell at Producer Level in May
  
• NFIB Small Business Optimism Pulls Back
  
• ISM Non-Manufacturing Index Above Expectations
  
• Some Good News: Employment Trend Index Moves Up
  
• May Jobs Report Disappoints Big Time
  
• ISM Report Shows Growth Slowing
  
• Q1 GDP Revised Lower

 

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