NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the sixth straight month,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at the main components of activity, shipments and new orders grew more slowly, while employment growth held steady. Other indicators varied slightly but suggested continued solid activity. District contacts reported that backlogs grew at a slightly slower pace and that increases in capacity utilization and delivery times eased somewhat, while inventories grew at a somewhat higher rate.”
Index readings above zero show expansion, while numbers below zero indicate contraction.
The manufacturing index decreased to 20 in March from 25 in February.
Shipments slid to 23 from 29, the Fed reported. Volume of new orders fell to 20 from 27, while the backlog of orders index decreased to 8 from 12.
The capacity utilization index decreased to 14 from 17, while the vendor lead time index slipped to 16 from 20. The number of employees index held at 16, while the average workweek index was 10 after a 17 reading last month, and the wages index grew to 19 from 18.
As for future outlook (six months from now), the shipments index was 42, down from 49 last month, while the volume of new orders index decreased to 45 from 48, and backlog of orders slid to 25 from 31. Capacity utilization declined to 34 from 41, the vendor lead time index climbed to 18 from 16, the number of employees index decreased to 17 from 27, while the average workweek index was at 12, off from 20 the previous month, and the wages index was 38, down from 44 last month. The capital expenditures index was 28, after 20 last month.
The finished goods inventories index rose to 14 from 10, while the raw materials index grew to 9 from 8. The current trend in prices paid slid to 4.61 in March from 4.72 in February, while slowing to 3.01 from 3.38 for prices received. The expected trend for the next six months increased to 4.31 from 3.47 for prices paid, and rose to 2.40 from 2.38 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.
