Manufacturing activity in the central Atlantic region "expanded" in October, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index rose to 20 in October from 14 in September.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments jumped to 23 from 11, the Fed reported. Volume of new orders rose to 22 from 14, while the backlog of orders index increased to 9 from 6.
The capacity utilization index held at 13, while the vendor lead time index climbed to 12 from 10. The number of employees index slid to 14 from 17, while the average workweek index was at 9 after a 10 reading last month, and the wages index grew to 11 from 9.
As for future outlook (six months from now), the shipments index was 43, up from 41 last month, while the volume of new orders index improved to 41 from 37, and backlog of orders gained to 17 from 11. Capacity utilization rose to 32 from 26, the vendor lead time index fell to negative 1 from positive 12, the number of employees index crept to 18 from 17, while the average workweek index was at 9, off from 10 the previous month, and the wages index was 26, after 35 last month. The capital expenditures index was 25 after 38 last month.
The finished goods inventories index slipped to 15 from 23, while the raw materials index slid to 19 from 20 the previous month.
The current trend in prices paid climbed to 2.22 in October from 2.10 in September, while growing to 1.23 from 1.17 for prices received. The expected trend for the next six months slid to 1.90 from 2.00 for prices paid, and increased to 1.46 from 1.19 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.
