Manufacturing activity in the Fifth District remained tepid in January, although showing a better-than-anticipated recovery, as per the latest survey data from the Federal Reserve Bank of Richmond released on Tuesday.
The composite manufacturing index saw a rise to -4 in January, improving from -10 in December. This result surpassed economists' predictions of a -8 reading, according to the Fifth District Survey of Manufacturing Activity.
These findings are derived from responses provided by 63 to 72 firms within the Fifth Federal Reserve District, encompassing the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and the majority of West Virginia.
In January, all three sub-indexes—shipments, new orders, and employment—experienced growth. However, firms have expressed a less favorable view on current local business conditions. Despite this, many firms are optimistic about the next six months, as future indexes for business conditions, shipments, and new orders remain positive.
Additionally, the surveyed firms anticipate an increase in both prices paid and prices received over the coming year.
