In November, the Fifth District's composite manufacturing index experienced a significant decline, dropping to -15 from October's -4, falling short of the anticipated figure of -2. This underperformance indicates a more pronounced slowdown in manufacturing activity. Specifically, shipments nosedived to -14 from a previous 4, and new orders decreased to -22 from October's -6. However, there was a slight improvement in employment, moving up to -7 from -10.
Local business conditions worsened, with the index descending to -20 from -1. Nevertheless, there is a glimmer of optimism among firms for the future. Expectations for local conditions improved, increasing to 1 from -5, while anticipated future shipments and new orders also rose, reaching 25 and 26, respectively. The employment outlook, however, softened a bit, adjusting to -1 from 2.
Price pressures saw an uptick, as the rate of growth in prices paid accelerated in November, although prices received remained stable. Looking ahead to the next year, businesses predict that the cost side will see moderated price increases, whereas the prices they charge are expected to rise slightly.
