Manufacturing activity in the central Atlantic region “remained soft in October,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index improved to negative 1 in October from negative 5 in September.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments dipped to negative 4 from negative 3, the Fed reported. Volume of new orders climbed to zero from negative 12, while the backlog of orders index increased to negative 7 from negative 24.
The capacity utilization index narrowed to negative 14 from negative 19, while the vendor lead time index dipped to negative 2 from positive 7. The number of employees index held at 3, while the average workweek index was at negative 5 after a negative 12 reading last month, and the wages index grew to 17 from 15.
As for future outlook (six months from now), the shipments index was 42, down from 48 last month, while the volume of new orders index gained to 44 from 42, and backlog of orders grew to 21 from 19. Capacity utilization fell to 28 from 31, the vendor lead time index declined to 5 from 10, the number of employees index fell to 19 from 26, while the average workweek index was at 12, off from 18 the previous month, and the wages index was 37, after 43 last month. The capital expenditures index was 21 after 33 last month.
The finished goods inventories index rose to 25 from 21, while the raw materials index gained to 26 from 22 the previous month.
The current trend in prices paid crept to 0.58 in October from 0.57 in September, while slowing to negative 0.10 from positive 0.47 for prices received. The expected trend for the next six months fell to 0.78 from 1.00 for prices paid, and decreased to 0.39 from 1.01 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.
