By Joshua Kirby
Manufacturing activity in the central U.S. fell much more sharply than expected this month, survey data from the Federal Reserve Bank of Richmond showed Tuesday.
The Fifth District Survey of Manufacturing Activity's index plummeted to minus 10 from a neutral reading in May, falling well short of economists' expectations for a slighter downtick back into the negative territory that points to a slowdown in factory activity in the region.
"Firms grew notably less optimistic about local business conditions," the Richmond Fed said.
The index is compiled by surveying 75 to 80 manufacturing firms across the Fifth Federal Reserve District, which comprises the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia.
Both shipments and new orders fell sharply, with the former reversing its previous positive trend, the survey showed. By contrast, the gauge of employment suggested an improvement.
Inflation also proved hot over the month. "The average growth rate of prices paid and prices received increased in June," the Richmond Fed said. "[Nevertheless,] firms expected price growth to moderate slightly over the next 12 months," it said.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
06-25-24 1027ET
