Richmond Fed: Further Decline in Manufacturing

“Manufacturing activity in the central Atlantic region declined further this month” and sentiment about future prospects edged lower, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond.

The manufacturing index declined to negative 38 in November from negative 26 in October.

Shipments slipped to negative 31 from negative 24, the Fed reported. Volume of new orders dipped to negative 48 from negative 35, and the backlog of orders index declined to negative 45 from negative 40.

The capacity utilization index fell to negative 34 from negative 27, while the vendor lead time index remained negative 9. The number of employees index widened to negative 32 from negative 15, the average workweek index was negative 30 after a negative 14 reading last month, and the wages index inched up to negative 3 from negative 4.

As for future — six months from now — outlook, the shipments index was 12, double the 6 posted last month, the volume of new orders index rose to 14 from 6, and backlog of orders reversed to positive 1 from negative 1.

Capacity utilization rose to 13 from 5, the vendor lead time index held at negative 4, the number of employees index rose to negative 17 from negative 19, while the average workweek index was at positive 8, up from negative 3 the previous month, and the wages index was flat at 29. The capital expenditures index was negative 35, down from negative 18.

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