NEW YORK – “Manufacturing activity in the central Atlantic region pulled back in August after stalling in July,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity was pushed lower as growth in new orders and shipments declined further into negative territory. Employment remained in positive territory but grew at a pace below July's rate. Other indicators also suggested weakening activity.”
The manufacturing index decreased to negative 10 in August from negative 1 in July.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments fell to negative 17 from negative 1, the Fed reported. Volume of new orders slid to negative 11 from negative 5, while the backlog of orders index decreased to negative 25 from negative 18.
The capacity utilization index decreased to negative 14 from negative 6, while the vendor lead time index slumped to negative 4 from positive 8 The number of employees index slid to 1 from 4 while the average workweek index was negative 5 after a zero reading last month, and the wages index fell to 2 from 10.
As for future outlook (six months from now), the shipments index was 17, down from 35 last month, while the volume of new orders index decreased to 17 from 40, and backlog of orders plunged to 4 from 25. Capacity utilization dipped to 15 from 30, the vendor lead time index inched down to 3 from 6, the number of employees index fell to 5 from 14, while the average workweek index was at 12, down from 13 the previous month, and the wages index was 20, off from 30 last month. The capital expenditures index was 10, after 16 last month.
The finished goods inventories index held at 17, while the raw materials index rose to 19 from 18 the previous month. The current trend in prices paid grew to 4.16 in August from 3.41 in July, while gaining to 1.46 from 1.18 for prices received. The expected trend for the next six months increased to 4.54 from 4.35 for prices paid, and grew to 3.35 from 2.97 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.
