Manufacturing activity in the central Atlantic region "strengthened in August," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index surged to positive 14 from negative 11 in July.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments soared to positive 17 from negative 15, the Fed reported. Volume of new orders reversed to positive 16 from negative 15, while the backlog of orders index climbed to positive 6 from negative 24.
The capacity utilization index grew to positive 3 from negative 9, while the vendor lead time index slipped to 1 from 3. The number of employees index rose to 6 from zero, while the average workweek index was at 8 after a 2 reading last month, and the wages index grew to 13 from 8.
As for future outlook (six months from now), the shipments index was 36, up from 24 last month, while the volume of new orders index rose to 33 from 24, and backlog of orders jumped to 15 from zero. Capacity utilization gained to 24 from 13, the vendor lead time index increased to 10 from 8, the number of employees index rose to 9 from 5, while the average workweek index was at 10, up from 8 the previous month, and the wages index was 28, up from 21 last month. The capital expenditures index was 15 after 11 last month.
The finished goods inventories index slid to 13 from 15, while the raw materials index grew to 13 from 11 the previous month.
The current trend in prices paid fell to 0.99 in August from 1.60 in July, while dipping to 0.69 from 1.02 for prices received. The expected trend for the next six months rose to 2.15 from 2.06 for prices paid, and grew to 1.23 from 1.17 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.
