Richmond Fed: Manufacturing Activity Improves

Manufacturing activity in the central Atlantic region "improved in November," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index soared to 13 from 1 in October.

Index readings above zero show expansion, while numbers below zero indicate contraction.

Shipments surged to positive 16 from negative 2, the Fed reported. Volume of new orders increased to 15 from zero, while the backlog of orders index narrowed to negative 1 from negative 15.

The capacity utilization index rose to zero from negative 5, while the vendor lead time index slid to 8 from 11. The number of employees index grew to 6 from 4, while the average workweek index was at positive 12 after a negative 1 reading last month, and the wages index rose to15 from 9.

As for future outlook (six months from now), the shipments index was 37, up from 30 last month, while the volume of new orders index jumped to 33 from 23, and backlog of orders remained at 11. Capacity utilization climbed to 20 from 18, the vendor lead time index slipped to 1 from 6, the number of employees index rose to 16 from 13, while the average workweek index was at 2, down from 5 the previous month, and the wages index was 31, up from 21 last month. The capital expenditures index was 23 after 24 last month.

The finished goods inventories index dipped to 13 from 14, while the raw materials index slid to 13 from 16 the previous month.

The current trend in prices paid dipped to 1.97 in November from 2.27 in October, while falling to 1.08 from 1.38 for prices received. The expected trend for the next six months slid to 1.75 from 2.08 for prices paid, and rose to 1.22 from 0.90 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.

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