Richmond Fed’s Fifth District Manufacturing Index Rises

The Federal Reserve Bank of Richmond’s manufacturing index rose in May, according to the most recent survey results released on Tuesday.

The fifth district manufacturing activity composite index rose to 18 from 17 in April.

The component indexes, namely: shipments, new orders, and employment, reflected growth.

“A majority of firms reported lengthening vendor lead times, as this index reached a record high, along with the backlog of orders index. Meanwhile, the index for raw materials inventories reached a record low. Overall, manufacturers reported improved business conditions.”

In addition, survey results showed that many companies have increased employment and wages this month, but still struggled to find workers with the necessary skills.