Manufacturing activity in the central Atlantic region "slowed" in February, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index dropped to negative 6 in February from positive 12 in January.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments slipped to negative 6 from positive 14, the Fed reported. Volume of new orders decreased to negative 9 from positive 14, while the backlog of orders index widened to negative 8 from negative 2.
The capacity utilization index fell to negative 7 from positive 11, while the vendor lead time index remained at zero. The number of employees index fell to zero from 6, while the average workweek index was at negative 5 after a positive 8 reading last month, and the wages index grew to 14 from 11.
As for future outlook (six months from now), the shipments index was 17, off from 33 last month, while the volume of new orders index slid to 15 from 30, and backlog of orders fell to zero from 14. Capacity utilization slumped to 12 from 27, the vendor lead time index held at 2, the number of employees index was steady at 12, while the average workweek index was at 3, down from 11 the previous month, and the wages index was 26, unchanged from 26 last month. The capital expenditures index was 9 after 27 last month.
The finished goods inventories index rose to 13 from 12, while the raw materials index jumped to 17 from 4 the previous month.
The current trend in prices paid dipped to 1.19 in February from 1.32 in January, while falling to 0.47 from 0.87 for prices received. The expected trend for the next six months rose to 2.25 from 1.64 for prices paid, and grew to 1.39 from 0.82 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.
