Manufacturing activity in the Richmond district continues to contract. Though better than April’s reading of negative six, many of the key metrics in this report showed significant declines. For example, Volume of New Orders was down two points from negative eight to negative ten; the Number of Employees declined six points from a positive reading of three to negative three; the Average Workweek was down three points from negative three to negative six; and Wages were down six points from twelve to six. Though Shipments showed a seventeen point improvement (from negative nine to positive eight), next month’s reading will most likely not remain positive given the weakness in new orders.
