NEW YORK – “Manufacturing activity in the central Atlantic region advanced somewhat faster in November,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “All broad indicators — shipments, new orders and employment — posted solid gains. Other indicators were also generally positive. District contacts reported that growth in capacity utilization grew at a faster pace, while growth in order backlogs exhibited more moderate weakness than a month ago. Delivery times were virtually unchanged, while manufacturers reported that inventories grew at a somewhat higher rate.”
The manufacturing index increased to 9 in November from 5 in October.
Shipments increased to 7 from 3, the Fed reported. Volume of new orders rose to 10 from 8, while the backlog of orders index improved to negative 3 from negative 12.
The capacity utilization index increased to 9 from 6, while the vendor lead time index inched up to 6 from 5. The number of employees index increased to 10 from 4, while the average workweek index was 9 after a zero reading last month, and the wages index slid to 8 from 12.
As for future outlook (six months from now), the shipments index was 36, down from 38 last month, while the volume of new orders index declined to 40 from 43, and backlog of orders fell to 20 from 25. Capacity utilization increased to 38 from 31, the vendor lead time index surged to 19 from 7, the number of employees index dropped to 7 from 12, while the average workweek index was at 10, an increase from 9 the previous month, and the wages index was 37, up from 19. The capital expenditures index was 24, after 16 last month.
The finished goods inventories index rose to 16 from 6, while the raw materials index grew to 15 from 10. The current trend in prices paid grew to 2.23 in November from 1.54 in October, while growing to 2.10 from 1.10 for prices received. The expected trend for the next six months increased to 3.30 from 2.40 for prices paid, and rose to 1.81 from 1.44 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.
