Manufacturing Activity Climbs in March

Source: Richmond Fed

Manufacturing in the Fifth District climbed in March as increases were recorded in shipments, new orders, and the number of employees. EXI is up 0.39%.

• The composite manufacturing index surged by 12 points to 13 in March from 1 in February, with increases recorded in all three component indexes.
• The shipments index soared to 9 in March from -11 in February, while the new orders index bounced to 10 from -3 in February.
• Order backlogs also rebounded to 7 from the -4 in February, which was the first negative reading in nearly two years since June 2020.
• The vendor leads time index was slightly down to 44 from 45 in February, reflecting that most firms were still recording higher lead times.
• The indexes for finished goods inventories and raw materials inventories remained in negative territory, while a decline was recorded in equipment and software spending.
• Increases were seen in services and capital expenditures.