Manufacturing Data from Richmond Fed Falls Sharply
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A reading of manufacturing activity within the central Atlantic region for May came in far worse than expected Tuesday: -6 versus the economist estimate of +9.
"The index of overall activity was pushed into negative territory by weak readings for shipments and new orders, while employment growth held steady," the Richmond Federal Reserve said in a release earlier.
Shipments fell a sharp 19 points from +6 in April to -13 this month. The volume of new orders also tumbled, moving from +10 to -15, while capacity utilization fell from +2 to -12.
Economists had been looking for a May shipment reading of +37, a volume of new orders reading of +40 and capacity utilization at +27.
While the figures look meager, the Fed reassured "Despite the recent decline in activity, manufacturers were generally optimistic about their future prospects in May. Survey contacts at an increasing number of firms looked for solid growth in shipments, new orders, capacity utilization and capital expenditures over the next six months."
"The index of overall activity was pushed into negative territory by weak readings for shipments and new orders, while employment growth held steady," the Richmond Federal Reserve said in a release earlier.
Shipments fell a sharp 19 points from +6 in April to -13 this month. The volume of new orders also tumbled, moving from +10 to -15, while capacity utilization fell from +2 to -12.
Economists had been looking for a May shipment reading of +37, a volume of new orders reading of +40 and capacity utilization at +27.
While the figures look meager, the Fed reassured "Despite the recent decline in activity, manufacturers were generally optimistic about their future prospects in May. Survey contacts at an increasing number of firms looked for solid growth in shipments, new orders, capacity utilization and capital expenditures over the next six months."
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