Manufacturing activity in the central Atlantic region "maintained a steady pace of growth" in January, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index dipped to 12 in January from 13 in December.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments slipped to 14 from 15, the Fed reported. Volume of new orders increased to 14 from 10, while the backlog of orders index narrowed to negative 2 from negative 8.
The capacity utilization index rose to 11 from 8, while the vendor lead time index rose to zero from negative 4. The number of employees index fell to 6 from 14, while the average workweek index was at 8 after a 6 reading last month, and the wages index grew to 11 from 10.
As for future outlook (six months from now), the shipments index was 33, off from 34 last month, while the volume of new orders index slid to 30 from 34, and backlog of orders fell to 14 from 18. Capacity utilization climbed to 27 from 26, the vendor lead time index dropped to 2 from 7, the number of employees index fell to 12 from 17, while the average workweek index was at 11, up from 4 the previous month, and the wages index was 26, off from 32 last month. The capital expenditures index was 27 after 9 last month.
The finished goods inventories index rose to 12 from 10, while the raw materials index slid to 4 from 12 the previous month.
The current trend in prices paid dipped to 1.32 in January from 1.53 in December, while falling to 0.87 from 1.04 for prices received. The expected trend for the next six months dropped to 1.64 from 2.05 for prices paid, and fell to 0.82 from 1.07 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.
