April 27, 2021

The Fifth District service sector expanded in April, according to the most recent survey from the Federal Reserve Bank of Richmond. The indexes for revenues and demand rose from 16 and 25 in March to 22 and 32, respectively, in April. Firms also reported improving local business conditions and increased capital spending. Survey participants were optimistic that conditions would continue to improve in the next six months.

April 27, 2021

Fifth District manufacturing activity improved in April, according to the most recent survey from the Richmond Fed. The composite index held steady at 17, indicating continued growth, as all three component indexes — shipments, new orders, and employment — remained positive. Survey responses indicated supply constraints, with the backlog of orders and vendor lead time indexes registering historic highs. Meanwhile, inventories shrank as the indexes for inventories of finished goods and raw materials reached their lowest values on record. Manufacturers were optimistic that conditions would continue to improve in the coming months.

Hear the latest results of the CFO Survey and learn more about what makes the survey unique from three members of the team that produces it each quarter. Sonya Waddell is a vice president and economist at the Richmond Fed. She manages the Regional and Community Analysis team within the Research Department. Brent Meyer is a policy adviser and economist at the Federal Reserve Bank of Atlanta and leads the Bank's Economic Survey Research Center. John Graham is a finance professor at Duke University and is director of the CFO Survey.

During the past 25 years, low interest rates and highly expansionary monetary policy with little apparent inflation have created the illusion that a government can simply print money to fund exorbitant deficit spending with no repercussions. This core tenet of so-called "modern monetary theory" ignores the fact that deficit spending is constrained in the long run by a government's ability to satisfy creditors.

Housing construction and sales activity matter a great deal to the U.S. economy as a whole, as they account for 4 percent of gross domestic product (GDP). On an individual level, too, the housing market is economically important; the largest asset holding of many Americans is their house. Thus, economists and policymakers at the Richmond Fed and other institutions closely track housing market activity through a variety of indicators.

While the housing market is integral to the economy, it does not perform the same way in every economic downturn. For example, weakness in the housing market was a major contributor to the Great Recession of 2007-2009, but that was not the case for the current pandemic-induced downturn. In addition, while the housing market continued to weaken throughout the Great Recession, it has remained relatively strong this year despite the significant decline in overall economic activity and the spike in unemployment in the spring. Both in the...

Research staff regularly monitors the national economy, helping the Richmond Fed grasp current conditions and their implications for monetary policy. Updated weekly, the following data is part of the information presented during policy discussions and meetings with our board of directors.

Latest Reading

The Hornstein-Kudlyak-Lange Non-Employment Index (NEI) was 8.7 percent in March 2021, declining from February 2021. The index was 0.6 percentage points higher compared to March 2020. The NEI including workers who are part time for economic reasons (PTER) was 9.8 percent in March 2021, declining from the previous month. That index was 0.6 percentage points higher compared to the same month in 2020.

Research staff regularly monitors the national economy, helping the Richmond Fed grasp current conditions and their implications for monetary policy. Updated weekly, the following data is part of the information presented during policy discussions and meetings with our board of directors.

The COVID-19 pandemic is inflicting enormous human and economic costs in the Fifth Federal Reserve District, the U.S. and the world. These interactive charts represent a sample of the higher frequency indicators that economists at the Federal Reserve Bank of Richmond are monitoring to understand the evolution of economic conditions during the pandemic.

Please check back for updated data every Friday. Also, the indicators may change as conditions evolve.

Charts updated September 18, 2020

Introduction

Across the country, K-12 students have returned to classrooms that look very different than they did a year ago. The COVID-19 pandemic has caused many school districts to shift classrooms to a completely virtual environment with students learning remotely. Other school districts are pursuing a hybrid approach with a combination of in-person and online learning. For school districts operating in person, social distancing and other health protocols still make the school day much different from before.

While the overall instructional environment has changed for many teachers and students, another layer of change is happening that is specific to different subject areas. One subject area that the Richmond Fed has particularly strong ties to is economics and personal finance. The Richmond Fed (and the Federal Reserve System overall) has a long-standing commitment to economic and financial education as part of our public service mission. Throughout the...

The Crooked Road officially refers to a 330-mile stretch of road in southwest Virginia that winds through the Appalachians and features stops where visitors can experience and learn about the region's traditional music. It more informally includes other places that celebrate the region's rich cultural history. The tourism spurred by this celebration has helped rebuild a struggling economy.

The economy in southwest Virginia had long been built on coal, tobacco, and manufacturing. A decline in these industries in the late 20th century led to job losses and weakening economic conditions. In an effort to revitalize the region, state and local leaders sought to tap existing cultural assets, particularly music. In doing so, they ushered in a creative economy, that is, one built on assets such as culture that are unique to a region but are not traditional economic drivers (for example, as coal mining has been in southwest Virginia).

In 2003, the city of Bristol was...

This virtual conference will provide undergraduate economics students with information on the range of career paths open to them and a forum to discuss the importance of having a variety of perspectives in the field of economics. Attendees will hear how economists' personal experiences and perspectives have influenced their paths and the projects they have chosen. Students will also have the opportunity to ask questions of economists who are currently working in different areas of the profession and to network with fellow students and recent college graduates who are working in the field of economics.

The event is being hosted by the Federal Reserve Bank of Richmond in partnership with Undergraduate Women in Economics and the Robins School of Business at the University of Richmond.

The virtual conference is complimentary but registration is required due to the limited capacity for interactive sessions in Zoom. Once the capacity on Zoom is reached, there...

The cost of college has been rising. After adjusting for inflation, the average tuition for a private four-year school in 2019-2020 is about twice what it was three decades ago. For public four-year schools, tuition nearly tripled over the same period.

Research staff regularly monitors the national economy, helping the Richmond Fed grasp current conditions and their implications for monetary policy. Updated weekly, the following data is part of the information presented during policy discussions and meetings with our board of directors.

The COVID-19 pandemic is inflicting enormous human and economic costs in the Fifth Federal Reserve District, the U.S. and the world. These interactive charts represent a sample of the higher frequency indicators that economists at the Federal Reserve Bank of Richmond are monitoring to understand the evolution of economic conditions during the pandemic.

Please check back for updated data every Friday. Also, the indicators may change as conditions evolve.

Charts updated September 11, 2020

Latest Reading

The Hornstein-Kudlyak-Lange Non-Employment Index (NEI) was 10.6 percent in August 2020, declining from 11.8 percent in July 2020. It has risen by 3.2 percentage points compared to August 2019. The NEI including workers who are part time for economic reasons (PTER) was 12.0 percent in August 2020, a decrease compared to 13.4 percent in the previous month. That index is 3.8 percentage points higher compared to August 2019.

The electric industry that powers so much of modern life was originally born out of a desire for better lighting. At the turn of the 19th century, people relied on candles or oil and gas lamps to light their homes. While these sources produced some light, they also gave off heat and smoke and required fuel and regular maintenance. The introduction of electric lighting, first arc lamps in the 1870s for city streets followed by the incandescent light bulb in the 1880s, heralded a much brighter future.

Electricity was initially a novelty for the rich, but utility companies soon discovered ways to take advantage of economies of scale in power generation and distribution, making it more affordable and accessible. Inventors created new machines using electric power in factories and homes, spurring growing demand. As a result, by the end of the Roaring '20s, most American cities were electrified. City dwellers enjoyed brightly illuminated homes and streets, indoor heating, and...