The Richmond Fed’s Fifth District Manufacturing Index improved to -7 in December (from -15 in November), showing slower contraction in regional manufacturing activity.

• Shipments rose to -11 (Nov: -14), indicating a reduced pace of decline in outbound manufacturing activity.
• New orders increased to -8 (Nov: -22), pointing to a notable easing in demand weakness relative to the prior month.
• Employment improved to -1 (Nov: -7), suggesting fewer firms reported declining payrolls, though conditions remained slightly negative.
• Local business conditions strengthened to -9 (Nov: -20), reflecting less pessimism about current regional conditions.
• Expectations for activity improved, with future shipments rising to 28 (Nov: 25) and future new orders edging up to 27 (Nov: 26), indicating firmer outlooks six months ahead.
• The future employment index increased to 8 (Nov: -1), signaling more firms expect hiring gains than losses.
• Price pressures were mixed, as the growth rate of prices paid eased slightly in December while prices received rose notably, narrowing the gap between input and output price growth.