Richmond Fed Manufacturing Index Stabilizes in February

Manufacturing activity in the United States continued to improve in February, as the economy recovers from the negative impacts of the Coronavirus pandemic.

The composite manufacturing index of the Federal Reserve Bank of Richmond remained stable at 14 in February, maintaining its January reading, data showed on Tuesday.

The three components of the index, namely shipments, new orders, and employment, all remained firmly positive.

The vendor lead-time index continued to rise after surging to its highest level in 25 years last month, reaching 46 in February, up from 39 in January.

The index for raw materials inventories hit a record low of −8.

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

Survey results indicated that many manufacturers increased employment and wages in February.