The Federal Reserve Bank of Richmond reported that its composite manufacturing index dropped to -2 in September, down from 4 in August. This decline marks the first negative reading for the Fifth Federal Reserve District's factory activity gauge in several months, aligning with analyst forecasts.
Shipments, a key indicator of output, saw a significant 16-point decline, falling to -5 from 11 in the previous month. Similarly, the sub-index for local business conditions retreated to -6, reversing the positive reading of 4 recorded in August.
Employment data provided a rare positive result, with the index rising to 7 from -2. However, expectations for future hiring cooled significantly, as the employment expectations index fell to 8 from 20. Manufacturers also reported an increase in growth rates for prices paid.
Despite the current downturn, survey respondents maintain a positive outlook for the coming months, expecting improvements in both shipments and new orders. The survey covers the Fifth Federal Reserve District, encompassing Washington DC, Maryland, Virginia, and the Carolinas.
