NEW YORK – “Manufacturing activity in the central Atlantic region firmed somewhat in June after stalling in May,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity steadied as a slightly positive reading for new orders coupled with solid employment growth offset a slightly negative reading for shipments. Other indicators were mixed, however. District contacts reported more moderate weakness in backlogs and capacity utilization, but noted that delivery times and finished goods inventories grew at a somewhat quicker pace.”
The manufacturing index increased to positive 3 in June from negative 6 in May.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments narrowed to negative 1 from negative 13, the Fed reported. Volume of new orders rose to positive 1 from negative 15, while the backlog of orders index increased to negative 16 from negative 19.
The capacity utilization index increased to negative 2 from negative 12, while the vendor lead time index climbed to 7 from 5. The number of employees index slid to 12 from 14, while the average workweek index was negative 5 after a zero reading last month, and the wages index grew to 9 from 6.
As for future outlook (six months from now), the shipments index was 44, up from 37 last month, while the volume of new orders index increased to 46 from 40, and backlog of orders slid to 20 from 22. Capacity utilization gained to 33 from 27, the vendor lead time index inched up to 9 from 8, the number of employees index rose to 21 from 17, while the average workweek index was at 14, unchanged from 14 the previous month, and the wages index was 31, up from 28 last month. The capital expenditures index was 25, after 26 last month.
The finished goods inventories index rose to 23 from 12, while the raw materials index held at 16. The current trend in prices paid fell to 4.82 in June from 6.12 in May, while slowing to 2.26 from 3.36 for prices received. The expected trend for the next six months increased to 4.28 from 3.63 for prices paid, and fell to 2.36 from 2.41 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.
