“Manufacturing activity in the central Atlantic region advanced slightly in February, following several months of modest declines,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond and released yesterday.
“The index of overall activity inched up as shipments steadied and solid gains in new orders offset a slight decrease in employment,” the survey said. “Other indicators were mixed. Backlogs of orders stabilized for the first time in six months and capacity utilization was unchanged from a month ago. Vendor delivery times grew at a slightly slower pace, while manufacturers reported slightly quicker growth in finished goods inventories.”
Meanwhile, “service sector activity contracted in February,” according to the Richmond Fed’s service-sector survey, also released yesterday. “Retail sales fell, with big-ticket sales dropping sharply.”
“In addition, services firms revenues contracted. Shopper traffic dissipated, held down in part by a series of heavy snow storms that occurred on weekends. Retail inventories were little changed. Looking ahead, survey respondents remained optimistic about business prospects during the next six months, although their outlook was less upbeat than a month ago.”
