Manufacturing activity in the central Atlantic region "flattened in May," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index improved to positive 1 in April from negative 8 in March.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments narrowed to negative 1 from negative 6, the Fed reported. Volume of new orders climbed to positive 2 from negative 6, while the backlog of orders index widened to negative 10 from negative 8.
The capacity utilization index rose to positive 7 from negative 4, while the vendor lead time index reversed to positive 6 from negative 6. The number of employees index slid to 3 from 7, while the average workweek index was at 6 after a 4 reading last month, and the wages index soared to 20 from 9.
As for future outlook (six months from now), the shipments index was 34, off from 38 last month, while the volume of new orders index inched up to 33 from 32, and backlog of orders dipped to 16 from 19. Capacity utilization fell to 25 from 26, the vendor lead time index slipped to 5 from 6, the number of employees index climbed to 18 from 16, while the average workweek index was at 12, unchanged from the previous month, and the wages index was 33, after 28 last month. The capital expenditures index was 26 after 26 last month.
The finished goods inventories index rose to 21 from 18, while the raw materials index grew to 22 from 19 the previous month.
The current trend in prices paid climbed to 0.70 in May from 0.69 in April, while slowing to 0.38 from 0.51 for prices received. The expected trend for the next six months rose to 1.47 from 1.22 for prices paid, and decreased to 0.93 from 0.95 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.
