Factory Activity Steadies, Richmond Fed Reports

“Manufacturing activity in the central Atlantic region stabilized in November following four months of contraction,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond.

The manufacturing index increased to zero in November from negative 6 in October. Index readings above zero show expansion, while numbers below zero indicate contraction.

Shipments rose to positive 1 from negative 6, the Richmond Fed reported. Volume of new orders grew to negative 2 from negative 5, while the backlog of orders index increased to negative 10 from negative 15.

The capacity utilization index slipped to negative 6 from negative 4, while the vendor lead time index rose to 5 from 2. The number of employees index climbed to zero from negative 7, the average workweek index was zero after a negative 1 reading last month, and the wages index gained to 10 from 5.

As for future outlook, the shipments index was 36, up from 28 in October, while the volume of new orders index increased to 37 from 25 and the backlog of orders climbed to 17 from 9. Capacity utilization gained to 30 from 21, the vendor lead time index fell to 6 from 10, the number of employees index rose to 22 from 13, the average workweek index was 3, unchanged from the previous month, and the wages index was 28, off from 19 last month. The capital expenditures index was 15, after 13 last month.

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