• The Richmond Fed manufacturing index surprisingly fell to -17 (cons -6) in July after -10 in June as it bucked the steady/higher readings seen in Empire/Philly surveys.
  • A further deterioration in new orders played a large role, falling from -16 to -23 for its lowest since the -24 in May’23. It was last lower only in the depths of the pandemic in Apr/May 2020 and 2008/09.
  • Tepid price components: “The average growth rate of prices paid and prices received decreased in July. Firms expected little change in price growth over the next 12 months [with a balance of just +1.3].”
  • The various regional Fed surveys point to unusually wide regional divergence in manufacturing activity, with Philly Fed new orders jumping from -2.2 to +20.7 in July for the highest since Mar 2022 - see charts.

US DATA: Richmond Fed Manufacturing Notably Weaker, Historically Wide Regional Divergence

Last updated at:Jul-23 14:48By: Chris Harrison
  • The Richmond Fed manufacturing index surprisingly fell to -17 (cons -6) in July after -10 in June as it bucked the steady/higher readings seen in Empire/Philly surveys.
  • A further deterioration in new orders played a large role, falling from -16 to -23 for its lowest since the -24 in May’23. It was last lower only in the depths of the pandemic in Apr/May 2020 and 2008/09.
  • Tepid price components: “The average growth rate of prices paid and prices received decreased in July. Firms expected little change in price growth over the next 12 months [with a balance of just +1.3].”
  • The various regional Fed surveys point to unusually wide regional divergence in manufacturing activity, with Philly Fed new orders jumping from -2.2 to +20.7 in July for the highest since Mar 2022 - see charts.

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