Manufacturing growth flattened in May
The Federal Reserve Bank of Richmond released the May Manufacturing Conditions Survey this morning covering activity in the central Atlantic region. Manufacturing flattened in May following a marked pickup in March and April.
Other indicators were primarily flat. The level of raw materials inventories remained constant, whereas the level of finished goods inventories grew more quickly in May. The raw materials inventories index held steady at 10, while the finished goods inventories index gained five points to 18. In contrast, the capacity utilization index grew more slowly, losing nine points to 4.Moving forward
In May, confidence was steady, though somewhat less so about their business prospects for the coming six months. The index of expected shipments fell six points to 35, while the new orders indicator held steady at 32.
Manufacturers’ plans for hiring in coming months were changed slightly from last month. The expected indexes for both manufacturing employment and the average workweek were unchanged at 14, and 11, respectively. The expected wage index, however, posted a four-point loss to 33.
Manufacturing Activity Index.