Richmond Fed manufacturing index slips to -2 in September as orders and shipments retreat

The Federal Reserve Bank of Richmond’s monthly factory survey turned negative in September, with the composite manufacturing index sliding to -2 from a reading of 4 in August. The result matched forecasts but still marks a meaningful shift for a regional economy that had been showing modest momentum earlier in 2026. The numbers behind the headline Shipments, one of the most direct measures of factory output, fell to -5 in September from a strongly positive 11 in August. That’s a 16-point swing in a single month. New orders followed a similar path, dropping to -6 from 3. Local business conditions told the same story. That sub-index fell to -6 in September, reversing from a reading of 4 the prior month. The one exception was employment, which improved to +7 from -2. The employment expectations index fell sharply to 8 from 20. Price pressures also picked up. The average growth rate in prices paid by manufacturers rose in September. Projections for both prices paid and prices received moderated over a 12-month horizon. What region this covers and why it matters The Richmond Fed’s survey covers the Fifth Federal Reserve District, which includes Washington DC, Maryland, Virginia, North C...