Manufacturing activity in the central Atlantic region "improved in July," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, although the manufacturing index reversed to positive 10 in July from negative 10 in June.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments improved to positive 7 from negative 8, the Fed reported. Volume of new orders jumped to positive 15 from negative 17, while the backlog of orders index gained to positive 1 from negative 12.
The capacity utilization index climbed to positive 3 from negative 11, while the vendor lead time index rose to 10 from 2. The number of employees index gained to 6 from 1, while the average workweek index was at 1 after a negative 7 reading last month, and the wages index dipped to 14 from 15.
As for future outlook (six months from now), the shipments index was 19, up from 11 last month, while the volume of new orders index rose to 23 from 13, and backlog of orders doubled to 10 from 5. Capacity utilization increased to 14 from 4, the vendor lead time index dipped to 2 from 3, the number of employees index grew to 7 from 2, while the average workweek index was at positive 2, up from negative 7 the previous month, and the wages index was 40, after 25 last month. The capital expenditures index rose to 17 from 15.
The finished goods inventories index dropped to 15 from 26, while the raw materials index fell to 23 from 26 the previous month.
The current trend in prices paid dropped to 0.64 in June from 1.14 in June, while slowing to 0.48 from 0.79 for prices received. The expected trend for the next six months decreased to 1.17 from 1.32 for prices paid, and fell to 0.46 from 1.04 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.
