RICHMOND FED INDEX PLUNGES TO -12 ON BROAD-BASED MANUFACTURING WEAKNESS

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The headline number plunged to -12 from last month's reading of 5.

Economists expected the index to remain unchanged.

The sub-components of the survey indicated weakness across the board, but the most stunning drop was in the volume of new orders, which fell from to an index reading of -17 from +10 in December.

Below is a summary from the text of the release:

Manufacturing activity in the central Atlantic region declined in January following two months of modest expansion, according to the Richmond Fed's latest survey. Nearly all broad indicators of activity fell into negative territory. Other indicators also suggested additional softness. Capacity utilization turned negative as did the gauge for delivery times, while backlogs continued its downward trend. In addition, finished goods inventories grew at a slightly quicker pace.

Looking ahead, assessments of business prospects for the next six months were somewhat more optimistic in January. An increasing number of contacts anticipated faster growth for new orders, capacity utilization, vendor lead-time, average workweek and capital expenditures, pushing up those indicators.

Survey assessments of current prices indicated that raw materials prices grew at a slightly quicker pace than in December, while finished goods prices grew at a slightly slower rate. Over the next six months, respondents expected raw materials prices to grow at a slightly slower pace compared to their outlook of last month, while they expected finished goods prices to grow at a somewhat quicker rate than they had anticipated a month earlier.

The table below breaks down sub-components of the survey:

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ORIGINAL: Minutes away from the release of the Richmond Fed's monthly manufacturing survey, due out in the United States at 10 AM ET.

Economists expect the index reading to stay flat at 5 in January.

We noted earlier that this release could be interesting given the recent weakness in other regional measures of manufacturing, such as the recent plunge in the Philadelphia Fed index and results from the latest Empire Fed survey that came in well below expectations.

We will have release LIVE at 10 AM ET. Click here to refresh for updates >