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The Federal Reserve Bank of Richmond reported manufacturing firms brought robust growth in November. The bank's latest composite index jumped from 12 to 30, the highest it has been since 1993. This rise was bolstered by strengthening conditions across all three components of the index.

Richmond Feb Nov 17

While indicators of current wages and finished goods fell in November, both maintained positive values, dropping from 24 to 21 and 14 to 9, respectively.District manufacturing firms remained optimistic that growth will continue in the coming six months. 

However a smaller share of firms raised their expectations than had in October in all areas, except for wages and capital expenditures. Manufacturing firms reported stronger price growth in November, as growth rates for both prices paid and prices received reached a three-month high. They expect prices to continue to grow in the next six months but at a slightly lower rate.

Highlights

  • Manufacturing Index +30 vs +14 expected Prior +12
  • Shipments +33 vs +9 prior
  • New orders 35 vs 17
  • Employment 18 vs 10
  • Wages 21 vs 24
  • Prices paid 2.04% vs 1.77%
  • Inventories 20 vs 21

Source: https://www.richmondfed.org/research/regional_economy/surveys_of_business_conditions/manufacturing/2017/mfg_11_28_17#tab-1

From The TradersCommunity News Desk

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