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Fifth District Survey of Manufacturing Activity

June 26, 2018 10 a.m.

Fifth District Manufacturing Firms Reported Continued Growth in June

Overview

Fifth District manufacturing continued to expand in June, according to results of the most recent survey from the Richmond Fed. The composite manufacturing index rose from 16 in May to 20 in June, buoyed by an increase in all three components (shipments, new orders, and employment). Firms also saw an increase in backlog of orders, as the index rose to its highest value of this year. Respondents were optimistic in June, expecting growth to continue across most indicators.

While survey results suggest a rise in employment in June, firms continued to struggle to find employees with the skills they needed, as this indicator fell from −3 in May to −14 in June, indicating further contraction. In spite of expectations of continued shortages, manufacturers expect payrolls to expand further in coming months.

On balance, manufacturers reported that price increases accelerated in June. In fact, the average increase in current prices paid reached its highest level since November 2012. However firms expect growth in both prices paid and prices received to slow in the next six months.

Charts

Index Table

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Regional Survey Team
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