Richmond Fed: Factory Activity 'Pulled Back'

"Manufacturing activity in the central Atlantic region pulled back in August after stalling in July," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. "The index of overall activity was pushed lower as growth in new orders and shipments declined further into negative territory."

The manufacturing index decreased to negative 10 in August from negative 1 in July.

Index readings above zero show expansion, while numbers below zero indicate contraction.

Shipments fell to negative 17 from negative 1, the Fed reported. Volume of new orders slid to negative 11 from negative 5, while the backlog of orders index decreased to negative 25 from negative 18.

As for future outlook, six months from now, the shipments index was 17, down from 35 last month.

Meanwhile, "service-sector activity retreated in August," according to the bank's service-sector activity survey released Tuesday, "Retail sales fell as shopper traffic declined and big-ticket sales dropped. Retail inventories inched up. Revenues at non-retail services firms also edged higher, compared to July. Retailers had a bleak outlook for sales in the six months ahead, while survey participants at non-retail firms were mildly optimistic about demand for their services."

Overall, the service-sector revenues index decreased to negative 1 in August, from positive 7 in July.

The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.

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