Manufacturing activity in the central Atlantic region "activity declined in March," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index slid to negative 8 in March from 0 in February.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments slumped to negative 13 from negative 1, the Fed reported. Volume of new orders fell to negative 13 from negative 2, while the backlog of orders index decreased to negative 12 from negative 10.
The capacity utilization index slid to negative 7 from negative 4, while the vendor lead time index dipped to negative 9 from positive 2. The number of employees index rose to 6 from 4, while the average workweek index was at negative 4 after a negative 6 reading last month, and the wages index held at 8.
As for future outlook (six months from now), the shipments index was 37, up from 30 last month, while the volume of new orders index increased to 35 from 24, and backlog of orders gained to 16 from 11. Capacity utilization dipped to 24 from 25, the vendor lead time index climbed to 5 from 4, the number of employees index soared to 23 from 12, while the average workweek index was at 8, off from 10 the previous month, and the wages index was 31, after 23 last month. The capital expenditures index was 32 after 27 last month.
The finished goods inventories index rose to 25 from 20, while the raw materials index grew to 25 from 16 the previous month.
The current trend in prices paid climbed to 0.62 in March from 0.32 in February, while growing to 0.10 from 0.09 for prices received. The expected trend for the next six months rose to 1.53 from 0.91 for prices paid, and increased to 1.09 from 0.48 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.
