NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the fifth straight month in September,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “All broad indicators — shipments, new orders and employment — landed in positive territory, with manufacturers noting their first increase in worker numbers since December 2007. Other indicators were mixed, however. Capacity utilization grew more slowly, while backlogs and vendor delivery times shrank. In addition, manufacturers reported slower growth in inventories.”
The manufacturing index remained at 14 in September, unchanged from 14 in August. The index was also 14 in July.
Shipments inched up to 22 from 21, the Fed reported. Volume of new orders dipped to 13 from 18, while the backlog of orders index reversed to negative 5, from positive 4 the prior month.
The capacity utilization index fell to 16 from 22, while the vendor lead time index slid to negative 3, from positive 2 the prior month. The number of employees index gained to 5 from zero, while the average workweek index was 15 after a 16 reading last month, and the wages index climbed to 9 from 6.
As for future outlook (six months from now), the shipments index was 20, unchanged from last month, while the volume of new orders index grew to 19 from 16, and backlog of orders tripled to 9 from 3. Capacity utilization rose to 12 from 10, the vendor lead time index fell to 1 from 7, the number of employees index reversed to positive 3 from negative 3, while the average workweek index was at negative 12, off from negative 5 the previous month, and the wages index was 11, an increase from 4. The capital expenditures index was 9, up from 3 last month.
The finished goods inventories index fell to 18 from 22, while the raw materials index slipped to 12 from 18. The current trend in prices paid fell to 0.61 in September from 1.15 in August, while slumping to 0.48 from 0.86 for prices received. The expected trend for the next six months rose to 1.88 from 0.93 for prices paid, and to 0.35 from 0.06 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.
