The latest survey from the Federal Reserve Bank of Richmond showed that
the U.S. fifth district's manufacturing activity improved but remained sluggish
in early May.
According to the survey, the composite manufacturing index rose from -7
in April to 0 in May. This marked the highest reading since October 2023 (+3).
Economists had expected the indicator to rise to -2 in May.
According to the report, the May improvement in the headline index
reflected a gain in such component as shipments (to 13 in May from -10 in April) and a slower
contraction in another component new orders (to -6 from -9). Meanwhile, the
indicator’s third component - employment - shrank at a faster pace (-6 in May,
compared to -2 in April).
In other survey results, the measure of backlog of orders (-19, compared
to -17 in April) and vendor lead time gauge (-13, compared to -7 in April) both
fell and remained negative in May. On the price front, the average growth rates of prices
paid (2.92, up from 2.79 in April) increased slightly in May, while prices
received (1.63, down from 2.37) dropped.