Manufacturing activity in the central Atlantic region "increased at a steady pace of growth" in May, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index rose to 10 in May from 6 in April.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments slipped to 3 from 10, the Fed reported. Volume of new orders remained at negative 9, while the backlog of orders index increased to positive 1 from negative 9.
The capacity utilization index fell to negative 2 from positive 1, while the vendor lead time index gained to 5 from 3. The number of employees index grew to 10 from 4, while the average workweek index was at 3 after a 3 reading last month, and the wages index soared to 22 from 6.
As for future outlook (six months from now), the shipments index was 17, down from 22 last month, while the volume of new orders index inched up to 22 from 21, and backlog of orders rose to 8 from 1. Capacity utilization gained to 22 from 16, the vendor lead time index rose to 8 from 5, the number of employees index dipped to 12 from 14, while the average workweek index was at 6, off from 7 the previous month, and the wages index was 28, after 24 last month. The capital expenditures index was 19 after 16 last month.
The finished goods inventories index dipped to 14 from 15, while the raw materials index grew to 9 from 7 the previous month.
The current trend in prices paid gained to 1.36 in May from 0.78 in April, while rising to 0.56 from 0.30 for prices received. The expected trend for the next six months grew to 1.69 from 1.32 for prices paid, and inched up to 1.01 from 1.00 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.
