Manufacturing activity in the central Atlantic region "activity slowed in August," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index slumped to zero in August from 13 in July.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments slumped to negative 4 from positive 16, the Fed reported. Volume of new orders dropped to 1 from 17, while the backlog of orders index decreased to negative 15 from positive 10.
The capacity utilization index fell to negative 5 from positive 9, while the vendor lead time index gained to 9 from 4. The number of employees index held at 1, while the average workweek index was at 3 after a 1 reading last month, and the wages index crept to 15 from 14.
As for future outlook (six months from now), the shipments index was 36, off from 420 last month, while the volume of new orders index slipped to 36 from 43, and backlog of orders climbed to 25 from 24. Capacity utilization rose to 34 from 27, the vendor lead time index fell to 6 from 9, the number of employees index declined to 19 from 22, while the average workweek index was at 12, up from 3 the previous month, and the wages index was 34, after 29 last month. The capital expenditures index was 29 after 31 last month.
The finished goods inventories index remained at 24, while the raw materials index grew to 24 from 16 the previous month.
The current trend in prices paid slipped to 0.80 in August from 1.45 in July, while growing to 0.71 from 0.58 for prices received. The expected trend for the next six months gained to 1.51 from 1.45 for prices paid, and increased to 1.20 from 1.03 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.
