The Federal Reserve Bank of Richmond reported that its manufacturing index for the Fifth District dropped to -2 in September. This marks a decline from the positive reading of +4 recorded in August, signaling a contraction in regional manufacturing activity.
Shipments fell significantly to -5 from +11 in August, while new orders slid to -6 from +3. Despite the overall downturn, the employment component rose to +7 from -2, indicating that local firms continued to add staff during the month.
Future expectations remain mixed. While outlooks for shipments and new orders stayed positive, the employment outlook dropped sharply to +8 from +20. Firms also reported expectations for smaller price increases in the coming period.
The Fifth District covers the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia. This survey is one of several regional reports used as indicators for the national Institute for Supply Management index.
