NEW YORK – “Manufacturing activity in the central Atlantic region contracted at a less pronounced rate this month,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at the main components of activity, employment grew at a slightly quicker rate, while shipments exhibited more moderate weakness and new orders slipped further into negative territory. Evidence of diminished weakness was also reflected in most other indicators. District contacts reported that backlogs, capacity utilization, and delivery times remained negative but improved from August's readings. Manufacturers reported somewhat quicker growth in finished goods inventories.”
The manufacturing index increased to negative 6 in September from negative 10 in August.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments rose to negative 2 from negative 17, the Fed reported. Volume of new orders slid to negative 17 from negative 11, while the backlog of orders index increased to negative 23 from negative 25.
The capacity utilization index increased to negative 11 from negative 14, while the vendor lead time index climbed to negative 2 from negative 4. The number of employees index grew to 7 from 1 while the average workweek index was negative 7 after a negative 5 reading last month, and the wages index rose to 6 from 2.
As for future outlook (six months from now), the shipments index was 27, up from 17 last month, while the volume of new orders index increased to 27 from 17, and backlog of orders jumped to 12 from 4. Capacity utilization gained to 20 from 15, the vendor lead time index grew to 11 from 3, the number of employees index fell to 3 from 5, while the average workweek index was at 10, down from 12 the previous month, and the wages index was 24, up from 20 last month. The capital expenditures index was 5, after 10 last month.
The finished goods inventories index rose to 22 from 17, while the raw materials index slid to 18 from 19 the previous month. The current trend in prices paid fell to 2.80 in September from 4.16 in August, while gaining to 1.61 from 1.46 for prices received. The expected trend for the next six months decreased to 4.45 from 4.54 for prices paid, and slid to 2.39 from 3.35 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.
