Manufacturing activity in the central Atlantic region “activity slowed in September,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index slipped to negative 5 in September from zero in August.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments narrowed to negative 3 from negative 4, the Fed reported. Volume of new orders dropped to negative 12 from positive 1, while the backlog of orders index decreased to negative 24 from negative 15.
The capacity utilization index fell to negative 19 from negative 5, while the vendor lead time index dipped to 7 from 9. The number of employees index grew to 3 from 1, while the average workweek index was at negative 12 after a positive 3 reading last month, and the wages index held at 15.
As for future outlook (six months from now), the shipments index was 48, up from 36 last month, while the volume of new orders index gained to 42 from 36, and backlog of orders dropped to 19 from 25. Capacity utilization fell to 31 from 34, the vendor lead time index rose to 10 from 6, the number of employees index gained to 26 from 19, while the average workweek index was at 18, up from 12 the previous month, and the wages index was 43, after 34 last month. The capital expenditures index was 33 after 29 last month.
The finished goods inventories index slid to 21 from 24, while the raw materials index fell to 22 from 24 the previous month.
The current trend in prices paid slipped to 0.57 in September from 0.80 in August, while slowing to 0.47 from 0.71 for prices received. The expected trend for the next six months fell to 1.00 from 1.51 for prices paid, and decreased to 1.01 from 1.20 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.
