Richmond Manufacturing Activity Improves in August

Manufacturing activity continued to strengthen in August, according to the most recent survey from the Federal Reserve Bank of Richmond.

The composite index rose from 10 in July to 18 in August, with survey results suggesting that many Fifth District manufacturers saw increases in employment, wages, and the average workweek this month.

“However, firms struggled to find workers with the necessary skills, as this index fell from 3 in July to −21 in August, its largest one-month drop on record. Survey respondents expected employment and wages to rise and continued difficulty finding skills in the coming months.”

“The average growth rates of both prices paid and prices received by survey participants increased in August. Growth of prices paid continued to outpace that of prices received, and respondents expect the gap to widen in the next six months.”