NEW YORK – “Manufacturing activity in the central Atlantic region advanced slightly in February, following several months of modest declines,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity inched up as shipments steadied and solid gains in new orders offset a slight decrease in employment. Other indicators were mixed. Backlogs of orders stabilized for the first time in six months and capacity utilization was unchanged from a month ago. Vendor delivery times grew at a slightly slower pace, while manufacturers reported slightly quicker growth in finished goods inventories.”
The manufacturing index reversed to positive 2 in February from negative 2 in January.
Shipments improved to zero from negative 2, the Fed reported. Volume of new orders increased to 9 from 1, while the backlog of orders index jumped to zero from negative 13.
The capacity utilization index held at negative 3, while the vendor lead time index slid to 2, from 5 the prior month. The number of employees index decreased to negative 7 from negative 5, while the average workweek index was negative 4 after a negative 6 reading last month, and the wages index slipped to 3 from 6.
As for future outlook (six months from now), the shipments index was 37, up from 29 last month, while the volume of new orders index gained to 39 from 34, and backlog of orders slipped to 17 from 20. Capacity utilization fell to 22 from 26, the vendor lead time index held at 6, the number of employees index fell to negative 1 from positive 3, while the average workweek index was at 20, an increase from 14 the previous month, and the wages index was 37, up from 34. The capital expenditures index was 22, after 20 last month.
The finished goods inventories index rose to 13 from 10, while the raw materials index dropped to 5 from 9. The current trend in prices paid slid to 1.68 in February from 1.89 in January, while dropping to 0.97 from 2.29 for prices received. The expected trend for the next six months decreased to 2.21 from 3.09 for prices paid, and to 1.14 from 1.89 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.
