The regional manufacturing reports are not having a good go of it this month. The Richmond Fed Region took a huge dive from +10 to -11. New orders lead the collapse, down a whopping 35 points to -20. The Empire State and Philly Fed reports were also weak.

Richmond Fed Synopsis

Richmond Fed 2016-08A

Disastrous Numbers

  • Index Down 21 points to-10
  • Shipments down 21 points to -14
  • New orders down 35 to -20
  • Order Backlog down 22 points to -1
  • Capacity utilization down 22 points to -19
  • Wages Up 7 points to +21
  • Finished goods inventories up 9 points to+21
  • Raw materials inventories up 4 points to +27

Inventories up, employment up, wages up. Shipments and new orders plunged. What a disaster, and it’s not just this regional report.

Disastrous Manufacturing August

Mike “Mish” Shedlock