Fed: Manufacturing activity down
Manufacturing activity fell in October, but the Richmond, Va., Federal Reserve said Tuesday expectations were positive.
Manufacturing activity in the central Atlantic region pulled back in October after expanding the previous four months, the Richmond Fed’s latest survey reported. The seasonally adjusted manufacturing index fell to minus 5 from September’s reading of 14. A negative number indicates a contraction.
Among the index’s components, the survey said shipments lost 27 points to minus 5, new orders fell 22 points to minus 8 and the jobs index was down 4 points to 0.
"District contacts reported that the pace of hiring flattened, order backlogs declined further and delivery times grew more slowly," the report said. "Furthermore, manufacturers reported that capacity utilization reversed its positive reading seen last month and that inventories grew at a slightly slower pace."
Despite the decline in activity, the Fed report indicated manufacturers surveyed were optimistic about their prospects. Firms said they expected shipments, new orders, capacity utilization and employment would grow in the months ahead. // Copyright 2007 by United Press International
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