Manufacturing activity in the central Atlantic region "grew mildly in January," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index dipped to 2 in January from 6 in December.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments dropped to negative 6 from zero, the Fed reported. Volume of new orders slid to 4 from 8, while the backlog of orders index increased to 4 from zero.
The capacity utilization index slipped to zero from 2, while the vendor lead time index crept to 4 from 3. The number of employees index fell to 9 from 12, while the average workweek index was at 8 after a 7 reading last month, and the wages index gained to 19 from 17.
As for future outlook (six months from now), the shipments index was 34, up from 24 last month, while the volume of new orders index grew to 28 from 23, and backlog of orders climbed to 13 from 11. Capacity utilization soared to 29 from 16, the vendor lead time index rose to 10 from 8, the number of employees index increased to 23 from 16, while the average workweek index was at 14, up from 4 the previous month, and the wages index was 33, after 22 last month. The capital expenditures index was 22 after 23 last month.
The finished goods inventories index slid to 24 from 27, while the raw materials index declined to 21 from 23 the previous month.
The current trend in prices paid fell to 0.59 in January from 0.67 in December, while growing to 0.51 from 0.27 for prices received. The expected trend for the next six months declined to 1.38 from 1.60 for prices paid, and decreased to 1.15 from 1.18 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.
