Manufacturing activity in the central Atlantic region "slowed in February," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index dipped to negative 4 in February from positive 2 in January.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments dropped to negative 11 from negative 6, the Fed reported. Volume of new orders slid to negative 6 from positive 4, while the backlog of orders index increased to negative 14 from positive 4.
The capacity utilization index slipped to negative 5 from zero, while the vendor lead time index crept to 6 from 4. The number of employees index held at 9, while the average workweek index was at 5 after an 8 reading last month, and the wages index fell to 10 from 19.
As for future outlook (six months from now), the shipments index was 31, off from 34 last month, while the volume of new orders index grew to 31 from 28, and backlog of orders remained at 13. Capacity utilization dropped to 17 from 29, the vendor lead time index slid to 4 from 10, the number of employees index decreased to 19 from 23, while the average workweek index was at 5, down from 14 the previous month, and the wages index was 23, after 33 last month. The capital expenditures index was 25 after 22 last month.
The finished goods inventories index slid to 20 from 24, while the raw materials index soared to 36 from 21 the previous month.
The current trend in prices paid fell to 0.16 in February from 0.59 in January, while slowing to 0.29 from 0.51 for prices received. The expected trend for the next six months declined to 1.18 from 1.38 for prices paid, and decreased to 0.69 from 1.15 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.
