NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the fifth straight month,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “All broad indicators — shipments, new orders and employment — posted solid gains. Other indicators also suggested stronger activity.”
Index readings above zero show expansion, while numbers below zero indicate contraction.
The manufacturing index increased to 25 in February from 18 in January.
Shipments gained to 23 from 29, the Fed reported. Volume of new orders rose to 27 from 17, while the backlog of orders index increased to 12 from 5.
The capacity utilization index decreased to 17 from 18, while the vendor lead time index jumped to 20 from 15. The number of employees index rose to 16 from 14, while the average workweek index was 17 after a 20 reading last month, and the wages index grew to 18 from 13.
As for future outlook (six months from now), the shipments index was 49, up from 38 last month, while the volume of new orders index increased to 48 from 40, and backlog of orders surged to 31 from 18. Capacity utilization increased to 41 from 34, the vendor lead time index climbed to 16 from 12, the number of employees index increased to 27 from 17, while the average workweek index was at 20, an increase from 13 the previous month, and the wages index was 44, unchanged from last month. The capital expenditures index was 20, after 29 last month.
The finished goods inventories index rose to 10 from 7, while the raw materials index fell to 8 from 9. The current trend in prices paid grew to 4.72 in February from 2.79 in January, while growing to 3.38 from 2.17 for prices received. The expected trend for the next six months increased to 3.47 from 3.17 for prices paid, and rose to 2.38 from 2.34 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.
