NEW YORK – “Manufacturing activity in the central Atlantic region advanced somewhat faster in March than a month earlier,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at the main components of activity, shipments grew at a modest pace, while new orders were virtually unchanged and employment steadied. Other indicators were mixed. Backlogs of orders landed in negative territory and capacity utilization turned positive after being negative for the last three months. Vendor delivery times grew at a considerably quicker rate, while manufacturers reported somewhat slower growth in finished goods inventories.”
The manufacturing index increased to 6 in March from 2 in February.
Shipments improved to 5 from zero, the Fed reported. Volume of new orders increased to 10 from 9, while the backlog of orders index slumped to negative 7 from zero.
The capacity utilization index reversed to positive 3 from negative 3, while the vendor lead time index rose to 8, from 2 the prior month. The number of employees index increased to zero from negative 7, while the average workweek index was zero after a negative 4 reading last month, and the wages index slipped to negative 3 from positive 3.
As for future outlook (six months from now), the shipments index was 40, up from 37 last month, while the volume of new orders index dipped to 37 from 39, and backlog of orders remained 17. Capacity utilization jumped to 34 from 22, the vendor lead time index grew to 13 from 6, the number of employees index increased to positive 4 from negative 1, while the average workweek index was at 16, a decrease from 20 the previous month, and the wages index was 20, off from 37. The capital expenditures index was 14, after 22 last month.
The finished goods inventories index fell to 6 from 13, while the raw materials index gained to 7 from 5. The current trend in prices paid rose to 2.39 in March from 1.68 in February, while soaring to 2.00 from 0.97 for prices received. The expected trend for the next six months decreased to 1.32 from 2.21 for prices paid, and to 0.20 from 1.14 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.
