Signs of stagflation are mounting as recent data from the Federal Reserve Bank of Richmond reveal dismal manufacturing activity and elevated inflation weighing down on the U.S. economy.
The Richmond Fed’s Manufacturing Index declined from an already low level of zero in September to -10 in October, going below its August level, said an Oct. 25 report by the bank. Two of the index’s components “deteriorated notably”—with the index for shipments falling from 14 to -3, and the index for volume of new orders declining from -11 to -22 during this period. The unemployment index remained unchanged at zero.
