Richmond Fed Manufacturing Index Edges Higher in September

The activity in the Federal Reserve’s Fifth District’s manufacturing sector expanded at a stronger pace in September than it did in August with the Composite Index of the Richmond Fed’s Survey of Manufacturing Activity rising to 21 from 18. Further details of the report showed that the Manufacturing Shipment Index declined from 22 to 13. 

Results reflected higher employment among many survey participants in September and suggested several manufacturers raised wages over the month. Firms struggled to find workers with the necessary skills. Respondents expected to see a continued rise in employment and wages.

The average growth rate of prices paid by surveyed manufacturers rose in September, while that of prices received fell, widening the gap between the two. On average, firms expected growth rates of both prices paid and prices received to rise in the near future