Manufacturing activity in the central Atlantic region "declined in August," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, although the manufacturing index reversed to negative 10 in August from positive 10 in July.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments dropped to negative 8 from positive 7, the Fed reported. Volume of new orders slumped to negative 17 from positive 15, while the backlog of orders index fell to negative 12 from positive 1.
The capacity utilization index fell to negative 11 from positive 3, while the vendor lead time index slid to 2 from 10. The number of employees index declined to 1 from 6, while the average workweek index was at negative 7 after a positive 1 reading last month, and the wages index inched up to 15 from 14.
As for future outlook (six months from now), the shipments index was 11, down from 19 last month, while the volume of new orders index fell to 13 from 23, and backlog of orders halved to 5 from 10. Capacity utilization decreased to 4 from 14, the vendor lead time index gained to 3 from 2, the number of employees index slid to 2 from 7, while the average workweek index was at negative 7, off from positive 2 the previous month, and the wages index was 25, after 40 last month. The capital expenditures index dipped to 15 from 17.
The finished goods inventories index rose to 26 from 15, while the raw materials index grew to 26 from 23 the previous month.
The current trend in prices paid increased to 1.14 in August from 0.64 in July, while growing to 0.79 from 0.48 for prices received. The expected trend for the next six months increased to 1.32 from 1.17 for prices paid, and rose to 1.04 from 0.46 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.
