Manufacturing activity in the central Atlantic region "slowed in May," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, although the manufacturing index slipped to negative 1 in May from positive 14 in April.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments fell to negative 14 from positive 14, the Fed reported. Volume of new orders dropped to zero from 18, while the backlog of orders index reversed to negative 13 from positive 11.
The capacity utilization index dropped to negative 6 from positive 18, while the vendor lead time index gained to 6 from 2. The number of employees index slid to 4 from 8, while the average workweek index was at 6 after a 9 reading last month, and the wages index remained at 15.
As for future outlook (six months from now), the shipments index was 24, up from 22 last month, while the volume of new orders index slid to 20 from 24, and backlog of orders gained to 10 from 7. Capacity utilization dropped to 11 from 13, the vendor lead time index slid to negative 1 from positive 2, the number of employees index fell to 2 from 10, while the average workweek index was at 3, up from 1 the previous month, and the wages index was 23, after 27 last month. The capital expenditures index dropped to 10 from 22.
The finished goods inventories index rose to 19 from 14, while the raw materials index jumped to 25 from 15 the previous month.
The current trend in prices paid rose to 1.27 in May from 1.07 in April, while growing to 0.77 from 0.45 for prices received. The expected trend for the next six months increased to 1.47 from 1.36 for prices paid, and grew to 0.89 from 0.81 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.
