DJ Richmond Fed -2: Gloom In The Heart Of The South
NEW YORK (Dow Jones)--Economic activity in the Richmond region remained depressed during April, amid a further weakening in manufacturing activity, the Federal Reserve Bank of Richmond reported on Tuesday.
The bank said that its manufacturing shipments index, a broad gauge of the manufacturing sector's health, slid strongly to -18 in April, from -4 the month before. Its manufacturing employment index moved sharply lower to -21 after a -6 reading the month before.
Readings below zero denote contraction. The Richmond Fed found some room for optimism against the general gloom of the numbers, saying "despite the continued declines in activity, respondents expectations remained generally upbeat."
It added that "firms continued to look for pickups in shipments, new orders and capital expenditures during the next six months."
Meanwhile, service sector revenue fell, but not as much as was seen the month before, with that index moving to -6, from -12 in March. The retail revenues index for April stood at -29, versus the -39 seen the month before.
The bank said that service sector prices grew at a 0.94% annual rate in April, after a 0.86% rate in March. In the retail sector, prices rose to a 0.86% rate, from a 0.77% gain in March.
The Richmond Fed report comes amid widespread concern about the economy's prospects. Federal Reserve officials, like many private sector economists, believe growth should improve. But they nonetheless recognize that at least over the short term, downside risks are looming largest.
The Richmond Fed's jurisdiction includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.
-By Michael S. Derby, Dow Jones Newswires; 201-938-4192; michael.derby@dowjones.com
(END) Dow Jones Newswires
05-13-03 1027ET |
