Richmond Fed November manufacturing index -9 vs. -9 estimate | Forexlive – WHERE FOREX NEWS LIVES
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Richmond Fed November manufacturing index -9 vs. -9 estimate | Forexlive

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November 22, 2022
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Manufacturing exercise from Richmond Fed

  • Prior month -10 (anticipated -5)
  • Manufacturing composite index for November
  • Services index -2
  • Shipments -8 vs. -3 final month
  • new orders -14 vs -22 final month
  • costs paid 10.19 vs. 1221 final month
  • costs acquired 9.91 vs. 8.62 final month
  • variety of staff -1 vs 0 final month
  • wages 25 vs. 34 final month
  • availability of expertise wanted -12 vs. -14 final month
  • backlog of orders -25 vs. -28 final month
  • capability utilization -16 vs. -9 final month
  • lender lead instances -10 vs. -15 final month
  • native enterprise situations -6 vs. -16 final month
  • capital expenditures 8 vs. 18 final month
  • completed items inventories 1 vs. -2 final month
  • uncooked supplies 24 vs. 20 final month
  • tools and software program spending 12 vs. 12 final month
  • companies expenditures -9 vs. 4 final month

Looking and expectations six-month ahead:

  • shipments 15 vs. -4 final month
  • new orders 3 vs. -16 final month
  • backlog of orders -20 vs. -25 final month
  • staff 20 vs. 10 final month
  • wages 55 vs. 47 final month
  • availability of expertise wanted 1 vs. -16 final month
  • capital expenditures 20 vs. 8 final month
  • lender lead time -15 vs. -24 final month

From the Richmond Fed:

Of its three part indexes,
the indexes for shipments and employment
deteriorated barely, edging downward to -8 and -1,
respectively. The third part index, quantity of
new orders, nevertheless, confirmed some enchancment,
rising from -22 to -14 in November.

Despite dramatic enhancements all through this 12 months,
provide chain points appeared to persist for some
companies, because the indexes for vendor lead time and
backlog of orders elevated barely.

The common development charge of costs paid decreased in
November, whereas the common development charge of costs
acquired elevated considerably. Expectations for costs
paid over the subsequent 12 months decreased barely since
final month, whereas expectations for costs acquired
elevated barely. Both remained at ranges a lot
decrease than present value developments.

The wage index decreased notably from 34 to 25 in
November however remained elevated. The native enterprise
situations index rose from -16 in October to -6 in
November, with significantly fewer companies pessimistic
about situations over the subsequent six months

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/Inflation
Inflation

Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex?The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.

Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex?The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.
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