Richmond reported a drop to +11 for August up down from the +16 reported for July. So the report weakened but its still signaling strong growth in the 5th District.Orders, Capacity Utilization, and Average Workweek remained strong while Backlog Orders flat lined though similar to the last 2 months.
Again a very solid report in an environment where the markets have priced in a double dip recession. The data outside of housing continues to not support such a scenario. Summary data from the Richmond report.
Other indicators varied. The backlogs of orders measure flattened, and the index for capacity utilization was virtually unchanged at 14. The delivery times index picked up four points to end at 8. Our gauges for inventories were mixed in August. The finished goods inventory index edged up three points to 11, and the raw materials inventory index trimmed two points to finish at 9.