Manufacturing activity in the central Atlantic region "strengthened in January, with continued growth in new shipments and the volume of new orders," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index rose to 12 in January from 8 in December.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments climbed to 13 from 12, the Fed reported. Volume of new orders gained to 15 from 12, while the backlog of orders index slid to 4 from 8.
The capacity utilization index fell to 8 from 10, while the vendor lead time index dropped to 5 from 10. The number of employees index gained to positive 8 from negative 1, while the average workweek index fell to 5 from 11 last month, and the wages index decreased to 11 from 19.
As for future outlook (six months from now), the shipments index was 50, up from 45 last month, while the volume of new orders index fell to 44 from 47, and backlog of orders climbed to 24 from 21. Capacity utilization decreased to 34 from 37, the vendor lead time index rose to 12 from 11, the number of employees index gained to 27 from 22, while the average workweek index was at 10, down from 13 the previous month, and the wages index was 31, after 35 last month. The capital expenditures index rose to 28 from 21.
The finished goods inventories index decreased to 8 from 11, while the raw materials index fell to 15 from 25 the previous month.
The current trend in prices paid decreased to 1.52 in January from 1.60 in December, while growing to 0.96 from 0.22 for prices received. The expected trend for the next six months increased to 1.75 from 1.58 for prices paid, and slid to 1.45 from 1.57 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.
