Manufacturing activity in the central Atlantic region "advanced moderately in June after contracting at a less pronounced rate in May," while expectations were near last month's numbers, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index rose to positive 8 from negative 2 in May.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments increased to 11 from 8, the Fed reported. Volume of new orders reversed to positive 9 from negative 10, while the backlog of orders index narrowed to negative 1 from negative 11.
The capacity utilization index improved to positive 1 from negative 6, while the vendor lead time index dipped to 1 from 2. The number of employees index rose to positive 4 from negative 3, while the average workweek index was at positive 12 after a negative 6 reading last month, and the wages index rose to 12 from 6.
As for future outlook (six months from now), the shipments index was 23, up from 22 last month, while the volume of new orders index fell to 23 from 28, and backlog of orders slipped to 6 from 16. Capacity utilization dipped to 18 from 20, the vendor lead time index decreased to 2 from 8, the number of employees index rose to 13 from 4, while the average workweek index was at 6, unchanged from the previous month, and the wages index was 27, up from 22 last month. The capital expenditures index was 10 after 9 last month.
The finished goods inventories index dipped to 2 from 6, while the raw materials index grew to 9 from 7 the previous month.
The current trend in prices paid rose to 1.24 in June from 1.00 in May, while growing to 0.62 from 0.24 for prices received. The expected trend for the next six months rose to 2.06 from 1.91 for prices paid, and slid to 1.42 from 1.67 for prices received.
All firms surveyed are located within the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.
