Manufacturing activity in the 5th district of the United States has shrunk the most in the past four years.

The overall manufacturing index for the 5th district of the United States in August 2024 decreased from -17 the previous month to -19, reflecting the most severe decline in factory activity since the collapse caused by the pandemic in May 2020.

This is the 10th consecutive contraction, highlighting the deterioration trend of the US manufacturing industry, which is also reflected in other surveys, due to the impact of rising borrowing costs on a larger scale for the manufacturing industry.

New orders further decreased (from -23 in July to -26), and despite a more significant decrease in order backlog (from -20 to -27), shipments continued to decline (from -21 to -15).

On the other hand, the decrease in the number of employers exceeded significantly compared to the same month last year (a decrease of 15 people, 5 people), raising concerns about a softening job market.

Furthermore, while the payment price (2.45 vs 3) decreased, the receiving price (1.87 vs 1.31) increased at a faster pace.

Source: Richmond Federal Reserve Bank