NEW YORK – “Manufacturing activity in the central Atlantic region contracted at a less pronounced rate in January,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity edged up a bit as growth in new orders turned slightly positive. Growth in shipments contracted at a somewhat slower pace, while employment contracted at a slightly quicker rate. Other indicators were also mixed. The pace of decreasing backlogs and capacity utilization were on par with December, while vendor delivery times increased. In addition, manufacturers reported slightly slower growth in inventories.”
The manufacturing index improved to negative 2 in January from negative 4 in December.
Shipments narrowed to negative 2 from negative 6, the Fed reported. Volume of new orders increased to positive 1 from negative 4, while the backlog of orders index slipped to negative 13 from negative 12.
The capacity utilization index held at negative 3, while the vendor lead time index grew to positive 5, from negative 2 the prior month. The number of employees index decreased to negative 5 from negative 2, while the average workweek index was negative 6 after a positive 2 reading last month, and the wages index climbed to positive 6 from negative 2.
As for future outlook (six months from now), the shipments index was 29, unchanged from 29 last month, while the volume of new orders index dipped to 34 from 35, and backlog of orders slipped to 20 from 21. Capacity utilization rose to 26 from 25, the vendor lead time index fell to 6 from 11, the number of employees index rose to 3 from 2, while the average workweek index was at 14, flat from 14 the previous month, and the wages index was 34, an increase from 29. The capital expenditures index was 20, off from 23 last month.
The finished goods inventories index fell to 10 from 14, while the raw materials index dropped to 9 from 11. The current trend in prices paid rose to 1.89 in January from 0.62 in December, while climbing to 2.29 from 0.28 for prices received. The expected trend for the next six months increased to 3.09 from 2.04 for prices paid, and to 1.89 from 0.69 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.
