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Fifth District Survey of Manufacturing Activity Signaled Recovery in July

Richmond Fed Manufacturing Index Post First Positive Reading Since March, Highest Since January 2020

Richmond, Va. (PPD) — The Federal Reserve Bank of Richmond Fifth District Survey of Manufacturing signaled recovery in July, rising from 0 in June to 10. The gain in the Richmond Fed Manufacturing Index is the first positive reading since March and the highest level since January 2020, when it came in at 12.

There is no consensus forecast for the lesser-reported survey of regional manufacturing activity. All three components rose in July.

The indexes for shipments and new orders pointed to expansion. The third component index for employment remained negative, albeit only slightly. The local business conditions index continued to rise from last month, suggesting improvement in manufacturer sentiment. Firms who responded were optimistic that conditions would improve in the next six months.

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