Manufacturing activity in the central Atlantic region "increased moderately in July," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index improved to 13 in July from 7 in June.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments gained to 16 from 5, the Fed reported. Volume of new orders climbed to 17 from 10, while the backlog of orders index increased to 10 from 3.
The capacity utilization index rose to 9 from 6, while the vendor lead time index dipped to 4 from 5. The number of employees index slid to 1 from 6, while the average workweek index was at 1 after a 4 reading last month, and the wages index slid to 14 from 16.
As for future outlook (six months from now), the shipments index was 42, up from 40 last month, while the volume of new orders index rose to 43 from 37, and backlog of orders climbed to 24 from 14. Capacity utilization fell to 27 from 29, the vendor lead time index grew to 9 from zero, the number of employees index climbed to 22 from 17, while the average workweek index was at 3, down from 12 the previous month, and the wages index was 29, after 31 last month. The capital expenditures index was 31 after 26 last month.
The finished goods inventories index slid to 24 from 30, while the raw materials index fell to 16 from 23 the previous month.
The current trend in prices paid climbed to 1.45 in July from 0.97 in June, while slowing to 0.58 from 0.59 for prices received. The expected trend for the next six months dipped to 1.45 from 1.47 for prices paid, and increased to 1.03 from 0.92 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.
