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Bidenflation rises again to all-time high in Mid-Atlantic manufacturing survey

Mid-Atlantic manufacturers have raised their expectations for price hikes in six months, a Federal Reserve Bank of Richmond investigation found on Tuesday.

Prices are expected to rise at an annualized rate of 5.8% in six months. This is the second highest on record, after September’s 5.83 and an acceleration from October’s 5.73%. The upward movement in expectations confirms other signs that inflation appears to be picking up as year-end in the United States approaches, rather than slowing down as the Biden administration predicted and Federal Reserve officials.

Expectations for the prices paid fell to a rate of 6.33%. That’s below the 6.49% rate a month ago, but it’s still the third highest on record.

Manufacturers report that the prices they pay for raw materials are increasing at an annual rate of 12.28 percent, down slightly from 13.03 percent, but still at the third-fastest rate on record. They say they are increasing the prices they charge for finished goods at a rate of 7.59%, the fourth fastest on record after three consecutive months of prices at or near record levels.

The Richmond Fed’s Monthly Survey of Manufacturing examines business conditions in the Fed’s Fifth District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and Major part of West Virginia.

The survey indicates that manufacturers continue to be plagued by shortages. Many companies have said inventories are too low and the finished goods inventory index has fallen to its lowest level on record. Supplier delivery times and backlogs continued to grow. And while increasing jobs and wages in November, they struggled to find workers with the necessary skills. Survey respondents expected these trends to continue over the next six months.

The composite index fell from 12 in October to 11 in November, but remained in what the Richmond Fed called “expansion territory.” The three component indices – shipments, new orders and employment – continued to reflect growth, according to the regional Fed.

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