The Richmond Fed manufacturing index jumped to +9 in November from -7 in October and 4 in September.
In November, the seasonally adjusted composite index of manufacturing activity gained sixteen points to 9 from October’s reading of -7. Among the index’s components, shipments rose twenty points to 11, new orders moved up seventeen points to finish at 11, and the jobs index increased eight points to 3.
Other indicators varied. The index for capacity utilization changed little, adding one point to -3, and the backlogs of orders declined six points to end at -9. In contrast, the delivery times index rose two points to 0, while our gauges for inventories were mixed in November. The raw materials inventory index eased two points to finish at 21, while the finished goods index gained four points to 19.
Labor market conditions firmed somewhat from a month ago. The manufacturing employment index turned positive, picking up eight points to 3, while the average workweek indicator was almost unchanged at 2. Moreover, the wage index held steady at 10.