Manufacturing activity in the central Atlantic region "expanded in February, as shipments increased and the volume of new orders rose broadly," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index rose to 17 in February from 12 in January.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments climbed to 16 from 13, the Fed reported. Volume of new orders gained to 24 from 15, while the backlog of orders index rose to 8 from 4.
The capacity utilization index climbed to 15 from 8, while the vendor lead time index grew to 9 from 5. The number of employees index gained to 10 from 8, while the average workweek index soared to 16 from 5 last month, and the wages index increased to 15 from 11.
As for future outlook (six months from now), the shipments index was 53, up from 50 last month, while the volume of new orders index increased to 53 from 44, and backlog of orders slipped to 21 from 24. Capacity utilization increased to 46 from 34, the vendor lead time index fell to 8 from 12, the number of employees index slid to 23 from 27, while the average workweek index was at 11, up from 10 the previous month, and the wages index was 30, after 31 last month. The capital expenditures index dipped to 27 from 28.
The finished goods inventories index increased to 14 from 8, while the raw materials index gained to 20 from 15 the previous month.
The current trend in prices paid increased to 2.09 in February from 1.52 in January, while growing to 1.35 from 0.96 for prices received. The expected trend for the next six months increased to 1.85 from 1.75 for prices paid, and slid to 1.41 from 1.45 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.
