The manufacturing sector in the U.S. central Atlantic region fell back into contraction in October after briefly stabilizing in the previous month, according to a survey from the Federal Reserve Bank of Richmond released Tuesday.
The Fifth District Survey of Manufacturing Activity’s index of general business conditions fell to minus 10 in October from zero in September. Readings below zero indicate a decline in activity.
The Richmond Fed’s index is based on surveys of manufacturing firms across the Fifth Federal Reserve District, which covers the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.
The survey indicated a contraction or stagnation for six months.
The primary demand measures in the survey—new orders and shipments—declined over the month. The new orders index has been negative for 7 months in a row. The October reading was the worst since May of 2020. Shipments turned negative after rebounding to positive territory in September.