The Richmond Fed Fifth District Manufacturing Index improved to -4 in October 2025 (from -17 in September), signaling continued contraction but at a slower pace.

• Shipments rose sharply to 4 (from -20), marking a return to positive territory and indicating stabilization in output.

• New Orders improved to -6 (from -15), showing softer declines in demand, while Backlogs rose to -16 (from -21), remaining negative but less weak.

• Employment increased to -10 (from -15), suggesting modest improvement, though hiring activity stayed subdued; Wages rose slightly to 15 (from 13).

• Local Business Conditions strengthened to -1 (from -12), but expectations for future conditions slipped to -5 (from -1).

• Capital Expenditures remained weak at -10 (from -16), while Equipment & Software Spending stayed soft at -10 (from -11).

• Prices Paid dropped to 5.81% (from 7.22%), and Prices Received eased to 3.04% (from 4.02%), indicating slower cost and price growth.

• Over the next year, firms expected input cost growth to moderate further to 4.68%, while price growth received was projected to rise modestly to 3.63%.