Richmond Fed Manufacturing Composite Index Eases to +4 From +5
Key Takeaways
- •The Richmond Fed's manufacturing composite index eased to +4 from +5 in its latest reading, published on August 25, 2026.
- •The composite index remained in positive territory for a second consecutive month, signaling continued manufacturing expansion in the region.
- •The shipments component improved to +11 from +8, even as the headline manufacturing gauge declined slightly.
- •The services index fell to -8 from -3, marking its lowest level of the year and reflecting further deterioration in service-sector conditions.
- •The survey covers the Fifth Federal Reserve District — Virginia, Maryland, North Carolina, South Carolina, most of West Virginia, and Washington, D.C. — with the next monthly installment due in late September.
The Federal Reserve Bank of Richmond's manufacturing composite index registered +4 in its latest reading, down from +5 in the prior month, according to data published on August 25, 2026.
Key readings from the report:
- Manufacturing composite index: +4, versus +5 previously
- Shipments: +11, versus +8 previously
- Services: -8, versus -3 previously
The services reading marks the lowest level of the year, while the shipments component improved on the month despite the slight easing in the headline manufacturing gauge. The composite itself stayed in positive territory for a second consecutive month, meaning manufacturing activity in the region continued to signal expansion even as service-sector conditions deteriorated further.
The survey is a monthly measure of regional business conditions produced by the Federal Reserve Bank of Richmond, which serves the Fifth Federal Reserve District — an area covering Virginia, Maryland, North Carolina, South Carolina, most of West Virginia, and Washington, D.C. Its headline composite is a diffusion index calculated from the shipments, new orders, and employment components, with readings above zero indicating expanding activity and readings below zero indicating contraction. Alongside the manufacturing poll, the Richmond Fed also surveys service-sector firms in the region each month.
Like comparable polls from other regional Fed banks — including the New York Fed's Empire State survey, the Philadelphia Fed's business outlook survey, and the manufacturing surveys published by the Dallas and Kansas City Feds — the Richmond report is among the earliest monthly reads on U.S. business conditions, typically arriving ahead of national indicators such as the ISM Manufacturing PMI. The figures are denominated in USD-relevant economic data and form part of the monthly calendar of regional Federal Reserve business surveys used to track U.S. economic conditions between major national data releases.
The survey's next monthly installment is due in late September, which will show whether the services component stabilizes after sliding to its lowest level of the year and whether the month's shipment gains carry forward.
Source: Investinglive
