Manufacturing activity in the central Atlantic region "grew modestly" in November, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index fell to 4 in November from 20 in October.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments slumped to 1 from 23, the Fed reported. Volume of new orders dropped to 1 from 22, while the backlog of orders index decreased to negative 2 from positive 9.
The capacity utilization index held at 13, while the vendor lead time index dipped to 7 from 12. The number of employees index slid to 10 from 14, while the average workweek index was at 5 after a 9 reading last month, and the wages index grew to 15 from 11.
As for future outlook (six months from now), the shipments index was 34, off from 43 last month, while the volume of new orders index declined to 36 from 41, and backlog of orders fell to 12 from 17. Capacity utilization slid to 21 from 32, the vendor lead time index rose to positive 2 from negative 1, the number of employees index crept to 22 from 18, while the average workweek index was at 9, unchanged from 9 the previous month, and the wages index was 24, after 26 last month. The capital expenditures index was 17 after 25 last month.
The finished goods inventories index gained to 20 from 15, while the raw materials index grew to 23 from 19 the previous month.
The current trend in prices paid slumped to 1.57 in November from 2.22 in October, while dropping to 0.90 from 1.23 for prices received. The expected trend for the next six months rose to 2.05 from 1.90 for prices paid, and decreased to 1.12 from 1.46 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.
