Manufacturing activity in the central Atlantic region "advanced moderately" in November, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index reversed to positive 9 from negative 7 in October.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments gained to positive 11 from negative 9, the Fed reported. Volume of new orders grew to positive 11 from negative 6, while the backlog of orders index widened to negative 9 from negative 3.
The capacity utilization index narrowed to negative 3 from negative 4, while the vendor lead time index crept to zero from negative 2. The number of employees index rose to positive 3 from negative 5, while the average workweek index was at 2 after a 3 reading last month, and the wages index remained at 10.
As for future outlook (six months from now), the shipments index was 28, up from 21 last month, while the volume of new orders index rose to 25 from 19, and backlog of orders surged to 19 from 6. Capacity utilization dropped to 12 from 19, the vendor lead time index rose to 10 from 7, the number of employees index decreased to zero from 8 while the average workweek index was at 6, off from 10 the previous month, and the wages index was 28, up from 25 last month. The capital expenditures index was 4 after zero last month.
The finished goods inventories index gained to 19 from 15, while the raw materials index dipped to 21 from 23 the previous month.
The current trend in prices paid fell to 1.99 in November from 3.21 in October, while dipping to 1.72 from 1.99 for prices received. The expected trend for the next six months fell to 1.95 from 2.55 for prices paid, and slid to 1.29 from 1.51 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.
