NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the sixth consecutive month but at a more moderate pace in July,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at our main components of activity, employment continued to grow at a modest rate, while shipments and new orders grew at a rate below June's pace. Most other indicators also suggested slower growth. Backlogs eased and capacity utilization continued to grow more slowly. Vendor lead-time grew at a considerably slower rate, while inventories grew at a somewhat quicker pace.”
The manufacturing index decreased to 16 in July from 23 in June.
Shipments slipped to 22 from 31, the Fed reported. Volume of new orders fell to 13 from 25, while the backlog of orders index dropped to 1 from 3.
The capacity utilization index slipped to 13 from 21, while the vendor lead time index fell to 4 from 17 the prior month. The number of employees index increased to 15 from 9, while the average workweek index was 16 after a 15 reading last month, and the wages index jumped to 13 from 10.
As for future outlook (six months from now), the shipments index was 30, down from 40 last month, while the volume of new orders index dipped to 24 from 38, and backlog of orders slid to 21 from 22. Capacity utilization declined to 29 from 35, the vendor lead time index decreased to 13 from 17, the number of employees index doubled to 22 from 11, while the average workweek index was at 16, an increase from 9 the previous month, and the wages index was 16, down from 25. The capital expenditures index was 17, after 25 last month.
The finished goods inventories index inched up to 8 from 7, while the raw materials index rose to 11 from 4. The current trend in prices paid slid to 1.59 in July from 2.31 in June, while slowing to 1.45 from 2.39 for prices received. The expected trend for the next six months increased to 1.74 from 1.51 for prices paid, and to 0.96 from 0.65 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.
