The latest survey from the Federal Reserve Bank of Richmond revealed on Wednesday
that the U.S. fifth district's manufacturing activity contracted in early December at a faster pace than in the previous month.
According to the survey, the composite manufacturing index decreased
from -5 in November to -11 in December. This was the worst reading since
February (-16).
According to the report, the deeper drop in the headline index in
December reflected declines in all three of its components - shipments (to -17 in December
from -8 in November), new orders (to -14 from -5) as well as employment (to -1
from 0).
In other survey results, the backlog of orders (-17, compared to -23 in November)
remained negative, and vendor lead time rose in December (1, compared to -4), recording
its first positive reading since June 2022.
On the price front, the average growth rates of prices
paid (4.24, up from 3.08 in November) and prices received (2.79, up from 1.97) increased
in December.