Manufacturing activity in the central Atlantic region "grew modestly" in January, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index slid to 6 in January from 7 in December.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments climbed to 10 from 5, the Fed reported. Volume of new orders held at 4, while the backlog of orders index decreased to negative 9 from negative 5.
The capacity utilization index rose to positive 9 from negative 5, while the vendor lead time index gained to 5 from 7. The number of employees index fell to 5 from 13, while the average workweek index was at 8 after a 4 reading last month, and the wages index slid to 3 from 8.
As for future outlook (six months from now), the shipments index was 30, down from 38 last month, while the volume of new orders index declined to 29 from 34, and backlog of orders slid to 11 from 14. Capacity utilization fell to 20 from 31, the vendor lead time index gained to 5 from 2, the number of employees index slid to 18 from 23, while the average workweek index was at 12, up from 3 the previous month, and the wages index was 31, after 26 last month. The capital expenditures index was 36 after 28 last month.
The finished goods inventories index gained to 25 from 22, while the raw materials index slid to 19 from 20 the previous month.
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.
