Manufacturing activity in the central Atlantic region "remained weak in October," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index crept to 1 from zero in September.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments slipped to negative 2 from negative 1, the Fed reported. Volume of new orders declined to zero from 5, while the backlog of orders index widened to negative 15 from negative 7.
The capacity utilization index dipped to negative 5 from positive 1, while the vendor lead time index rose to 11 from 1. The number of employees index reversed to positive 4 from negative 6, while the average workweek index was at negative 1 after a negative 4 reading last month, and the wages index slid to 9 from 13.
As for future outlook (six months from now), the shipments index was 30, off from 39 last month, while the volume of new orders index fell to 23 from 35, and backlog of orders slumped to 11 from 18. Capacity utilization dropped to 18 from 29, the vendor lead time index remained at 6, the number of employees index fell to 13 from 17, while the average workweek index was at 5, down from 8 the previous month, and the wages index was 21, off from 26 last month. The capital expenditures index was 24 after 31 last month.
The finished goods inventories index grew to 14 from 11, while the raw materials index rose to 16 from 14 the previous month.
The current trend in prices paid dipped to 2.27 in October from 2.44 in September, while falling to 1.38 from 1.98 for prices received. The expected trend for the next six months slid to 2.08 from 2.26 for prices paid, and fell to 0.90 from 1.73 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.
