Manufacturing activity in the central Atlantic region “expanded in March,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index soared to positive 22 in March from negative 4 in February.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments surged to positive 27 from negative 11, the Fed reported. Volume of new orders soared to positive 24 from negative 6, while the backlog of orders index increased to positive 1 from negative 14.
The capacity utilization index rebounded to positive 17 from negative 5, while the vendor lead time index slid to zero from 6. The number of employees index inched up to 11 from 9, while the average workweek index was at 16 after a 5 reading last month, and the wages index rose to 20 from 10.
As for future outlook (six months from now), the shipments index was 37, up from 31 last month, while the volume of new orders index grew to 45 from 31, and backlog of orders rose to 18 from 13. Capacity utilization gained to 26 from 17, the vendor lead time index slid to 3 from 4, the number of employees index remained at 19 from 19, while the average workweek index was at 10, up from 5 the previous month, and the wages index was 24, after 23 last month. The capital expenditures index was 15 after 25 last month.
The finished goods inventories index slid to 18 from 20, while the raw materials index dropped to 21 from 36 the previous month.
The current trend in prices paid rose to 0.60 in March from 0.16 in February, while growing to 0.40 from 0.29 for prices received. The expected trend for the next six months declined to 0.95 from 1.18 for prices paid, and increased to 0.77 from 0.69 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.
