NEW YORK – “Manufacturing activity in the central Atlantic region firmed somewhat after stabilizing in November,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity edged higher as positive readings for shipments and new orders offset a slight decline in the reading for employment.”
The manufacturing index increased to 3 in December from zero in November.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments rose to 3 from 1, the Fed reported. Volume of new orders grew to positive 7 from negative 2, while the backlog of orders index increased to positive 1 from negative 10.
The capacity utilization index climbed to zero from negative 6, while the vendor lead time index slid to 4 from 5. The number of employees index slipped to negative 4 from zero while the average workweek index was at 3 after a zero reading last month, and the wages index remained at 10.
As for future outlook (six months from now), the shipments index was 27, off from 36 last month, while the volume of new orders index decreased to 21 from 37, and backlog of orders slumped to 6 from 17. Capacity utilization declined to 19 from 30, the vendor lead time index fell to 2 from 6, the number of employees index dropped to 17 from 22, while the average workweek index was at 7, up from 3 the previous month, and the wages index was 18, off from 28 last month. The capital expenditures index was 7, after 15 last month.
The finished goods inventories index grew to 23 from 18, while the raw materials index fell to 13 from 15 the previous month.
The current trend in prices paid dropped to 0.81 in December from 3.42 in November, while falling to 0.58 from 2.64 for prices received. The expected trend for the next six months decreased to 2.70 from 2.79 for prices paid, and grew to 2.23 from 1.46 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.
