The Richmond Fed manufacturing index for August 2021
- Prior report was 27 (expected 20). Unrevised at 27
- Shipments 6 versus 21 last month.
- New orders five versus 25.
- Number of employees 18 versus 36 last month.
- Wages 50 versus 47 last month.
- Average workweek 11 versus seven last month.
- Availability of skills needed -36 versus -34 last month.
- Prices paid 11.05 versus 11.16 last month.
- Prices received 9.25 versus 6.93 last month
- Backlog of orders nine versus 25 last month.
- Capacity utilization six versus 21 last month.
- Vendor lead times 61 versus 63 last month.
- Local business conditions -12 versus 20 last month.
- Capital expenditures 16 versus 24 last month.
- Finished goods inventories -10 versus -21 last month.
- Raw materials inventories -14 versus -24 last month.
- Equipment and software spending 16 versus 19 last month.
- Services expenditures three versus four last month.
Full report CLICK HERE
The index is the lowest since July of last year.
From the Richmond Fed:
- The composite index declined from 27 in July to 9 in August but remained in expansionary territory, as all three component indexes - shipments, new orders, and employment - decreased but remained positive
- Several manufacturers reported deteriorating local business conditions. Survey contacts also noted that lead times continued to increase and inventories remained low. Overall, they were optimistic that conditions would improve in the next six months
- Survey results suggested that many firms increased employment and wages in August, as the wage index hit a record high. Firms struggled to find workers with the necessary skills, and they expected these trends to continue in the coming months.
- The average growth rate of prices paid by survey respondents declined slightly in August, while that of prices received increased. Firms expect price growth to slow over the next year.
Below is the table of recent components. Also are the expectations 6 months forward which continue to show positive readings.
For this month however, the Richmond Fed joins the Philadelphia Fed and Empire (NY) manufacturing regional indices as being weaker than expectations.
