Richmond Fed Manufacturing Index Falls Sharply

Manufacturing activity growth in the Fifth District slowed more than analysts expected in March, with the Richmond Fed Manufacturing Index falling sharply by 13 points from February's near record level to 15. The deceleration seen in the seventeenth consecutive monthly expansion of manufacturing in the Fifth District followed February's particularly dynamic upsurge and was driven by sizeable declines in shipments, down 16 points to 15, new orders, down 10 points to 17 and employment, where the number of employees component fell 14 points to 11. But the deceleration was broad-based, with all but one (service expenditures, up 8 points to 18) of the business sector activity components registering declines within current conditions.