Economic activity among manufacturers in the central Atlantic region
contracted sharply this month, the Federal Reserve Bank of Richmond
reported Tuesday. The service sector reported a plunge in revenues
this month.
The bank's manufacturing general-business index dropped to -17 from -1
in June, first reported as -3. The Richmond Fed said it has
recalculated historical data to reflect new seasonal factors.
Numbers above zero indicate expanding activity.
Last week the factory reports from the Fed banks of New York and
Philadelphia were mixed. The New York report showed regional activity
expanding at a faster pace in July than in June, while the
Philadelphia survey showed area manufacturing activity still
contracting this month.
The Richmond subindexes generally were sharply weaker in July.
The shipment index plummeted to -23 this month from 0 in June, first
reported -2, and the new orders index declined to -25 from -7,
originally put at -12.
The employment index dropped to 1 from an unrevised 8 last month.
Looking out over the next six months, businesses are less optimistic.
The shipments-expectation index fell to 16 from 29, first reported as
33 in June. The orders-expectations index slipped to 16 from 29, first
put at 30.
Price pressures continue to ease. The current prices-paid index fell
to 1.33 from 1.39, first reported as 1.38, while the prices-received
index slipped to 0.51 from 0.66, previously reported as 0.48.
On the service side, the Richmond survey was much weaker this month
after rebounding in June.
The revenues index plunged to -11 from 11 in June, first reported as
9, and the employees index dropped to -3 from 6, previously put at 5.
The Richmond Fed surveys cover businesses in Washington D.C.,
Maryland, North Carolina, South Carolina, Virginia and most of West
Virginia.
Write to Kathleen Madigan at kathleen.madigan@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 10:55 ET (14:55 GMT)
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