The latest survey from the Federal Reserve Bank of Richmond revealed
that the U.S. fifth district's manufacturing activity continued to shrink in early December,
albeit at a weaker pace than in the previous month.
According to the survey, the composite manufacturing index increased
from -14 in November to -10 in December. This represented the highest reading
since June (-10).
Economists had anticipated the indicator to rise to -9 in December.
According to the report, the December improvement in the headline index mainly
reflected a slower contraction in such a component as new orders (to -11 from -19 in November).
Meanwhile, the indicator’s two other components - employment (-8 in December,
compared to -10 in November) and shipments (-11, compared to -12) - were
relatively flat.
In other survey results, the measure of backlog of orders (-13, compared
to -27 in November) and vendor lead time gauge (11, compared to 4 in November)
both increased though the former remained in negative territory. On the price
front, the average growth rates of prices paid (2.86, up from
2.48 in November) increased in December, while prices received (1.71, down from
2.07) declined.