Richmond Fed: Manufacturing continues to improve

Surprised?  Not if you keep up with this blog or its resident newsletter.  US manufacturing - contrary to the China outsource hype you hear in the abstract financial media - is dare I say, booming?  The problem I have, and have had since beginning my public writing is in the remote and inflationary management of the economy, which always injects inflationary distortions one way or another.  But it's a big reason that net bearish is a hard way to go through life... until one unpredictable day, that a given construct finally implodes.

5th District Survey of Manufacturing Activity

 

Overview

Manufacturing activity in the central Atlantic region expanded for the sixth straight month, according to the Richmond Fed's latest survey. Looking at the main components of activity, shipments and new orders grew more slowly, while employment growth held steady. Other indicators varied slightly but suggested continued solid activity. District contacts reported that backlogs grew at a slightly slower pace and that increases in capacity utilization and delivery times eased somewhat, while inventories grew at a somewhat higher rate.

Looking forward, manufacturers' optimism remained in place in March. Survey contacts at an increasing number of firms looked for solid growth in shipments, new orders, backlog of orders, capacity utilization, and capital expenditures in the next six months.

Survey measures of current prices revealed that both prices of raw materials and finished goods grew at a slightly slower pace in March. Respondents indicated that during the next six months they expected growth in raw materials prices to quicken, but they expected little change in finished goods prices from what they had anticipated last month.