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
- 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
- August 15: Empire State Manufacturing Index Dips 5 Points to -4.2
- August 18: Peeking Under the Hood of the Philly Fed Manufacturing Positive Headline
- August 23: Richmond Fed Manufacturing Disaster: Activity, New Orders, Shipments Plunge This Report
Mike “Mish” Shedlock