Manufacturing activity in the central Atlantic region "grew modestly" in December, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index rose to 7 in December from 4 in November.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments climbed to 5 from 1, the Fed reported. Volume of new orders gained to 4 from 1, while the backlog of orders index decreased to negative 5 from negative 2.
The capacity utilization index fell to negative 5 from positive 13, while the vendor lead time index dipped to 2 from 7. The number of employees index grew to 13 from 10, while the average workweek index was at 4 after a 5 reading last month, and the wages index slid to 8 from 15.
As for future outlook (six months from now), the shipments index was 38, up from 34 last month, while the volume of new orders index declined to 34 from 36, and backlog of orders grew to 14 from 12. Capacity utilization rose to 31 from 21, the vendor lead time index gained to 3 from 2, the number of employees index crept to 23 from 22, while the average workweek index was at 3, down from 9 the previous month, and the wages index was 26, after 24 last month. The capital expenditures index was 28 after 17 last month.
The finished goods inventories index gained to 22 from 20, while the raw materials index slid to 20 from 23 the previous month.
The current trend in prices paid slumped to 1.26 in December from 1.57 in November, while dropping to 0.83 from 0.90 for prices received. The expected trend for the next six months fell to 1.46 from 2.05 for prices paid, and decreased to 0.81 from 1.12 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.
