Highlights
Manufacturing may be rebuilding momentum based on the incoming mix of indicators led today by the Richmond Fed whose manufacturing index rose to four for the first positive reading since May. And the gain includes a rise in new orders which at seven is also the first positive reading since May, and it compares with steep declines of minus 20 and minus 25 in the prior two reports. In a partial offset, backlog orders, at minus nine, continue to contract though the drawdown is growing much less severe.

Other readings include a second straight month of growth for shipments and at an increasing rate, along with an increase in capacity utilization. A negative in the report is a second straight month of contraction for employment. Price indications show a slight increase for raw materials and slightly less pricing power for finished goods.

This is the fourth regional manufacturing report so far this month with yesterday's Dallas report also strong vs mixed Philly Fed results and a downbeat Empire State report posted last week. Note that last week's PMI flash index, which is national, indicated stable and modest growth for manufacturing. The next regional report will be from Kansas City on Thursday.

Market Consensus before announcement
The Richmond Fed manufacturing index for August posted at minus 9 indicating monthly contraction in general activity though at a less severe rate than July's minus 17 reading. Less severe contraction is about the only good thing that can be said in this report with new orders, at a very weak minus 20, only a bit improved from July's minus 25. Backlog orders also showed slightly less severe contraction.

2012 Release Schedule

Released On: 1/24 2/28 3/27 4/24 5/22 6/26 7/24 8/28 9/25 10/23 11/27 12/26 Release For: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec