Richmond Fed Manufacturing Index Declines in January

The Richmond Fed Manufacturing Index declined from 19 in December to 14 in January, data by the Federal Reserve Bank of Richmond showed on Tuesday.

Despite the decline, the index remained in the expansion territory.

Manufacturers reported lengthening vendor lead times, as this index rose to 39, its highest reading since January 1996.

Manufacturers were optimistic that conditions would continue to improve in the coming months.

In addition, manufacturers increased employment and wages in January.

Survey respondents struggled to find workers with the necessary skills, and firms expected this difficulty to persist but employment and wages are set to rise in the next six months.