Manufacturing activity in the central Atlantic region "expanded in December," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, although the manufacturing index rose to 8 in December from 4 in November.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments climbed to 12 from 1, the Fed reported. Volume of new orders gained to 12 from 7, while the backlog of orders index reversed to positive 8 from negative 12.
The capacity utilization index rose to positive 10 from negative 1, while the vendor lead time index grew to 9 from 4. The number of employees index declined to negative 1 from positive 5, while the average workweek index tripled to 12 from 4 last month, and the wages index increased to 19 from 16.
As for future outlook (six months from now), the shipments index was 45, up from 41 last month, while the volume of new orders index rose to 47 from 38, and backlog of orders climbed to 21 from 16. Capacity utilization increased to 37 from 28, the vendor lead time index rose to 11 from 5, the number of employees index gained to 22 from 15, while the average workweek index was at 14, up from 6 the previous month, and the wages index was 36, after 26 last month. The capital expenditures index dipped to 20 from 27.
The finished goods inventories index decreased to 11 from 18, while the raw materials index rose to 25 from 23 the previous month.
The current trend in prices paid increased to 1.23 in December from 1.00 in November, while slowing to 0.22 from 0.57 for prices received. The expected trend for the next six months increased to 1.30 from 1.17 for prices paid, and rose to 1.46 from 0.91 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.
