RICHMOND FED MANUFACTURING INDEX PLUNGES INTO NEGATIVE TERRITORY
The headline index plunged to -6 from +3 last month.
Economists were looking for +2 this month.
Below is an overview of the data from the text of the release:
Manufacturing activity in the central Atlantic region pulled back in April after growing at a slower pace in March, according to the Richmond Fed’s latest survey.
The index of overall activity landed in negative territory, driven by weak readings for factory shipments and volume of new orders. Employment, however, remained in positive territory but grew at a pace below March’s rate.
Other indicators also suggested weaker activity. Capacity utilization and backlogs fell further, while the gauge for delivery times was unchanged. In addition, inventories grew at a slightly slower rate.
Looking forward, manufacturers in April were less optimistic about their future business prospects. An increasing number of contacts anticipated slower growth across the board for all indicators of activity six months from now.
Survey participants indicated that raw materials prices grew on par with March’s pace, while finished goods prices grew at a slower rate than a month ago.
Over the next six months, however, respondents expected both raw materials and finished goods prices to grow at a slightly quicker rate than they had anticipated last month.