Richmond Fed's manufacturing index improves in May

(Sharecast News) - The Richmond Federal Reserve's manufacturing index increased to 13 points in May, up from a reading of 3 in April, as all three of its component indices rose.

Shipments jumped to 16 from −2, while new orders rose to 17 from 8, and employment improved to 3 from 0. The future indices for shipments and new orders increased further into positive territory, while the expectations index for employment rose to 23 from 7.

The local business conditions index, on the other hand, decreased to 5 in May from 10 in April. However, the future local business conditions index rose to 17 from 3.

The average growth rates of prices paid and prices received decreased somewhat in May, while firms also reported that they expected growth in prices paid to moderate slightly over the next 12 months.

Reporting by Iain Gilbert Sharecast.com