NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the fourth straight month,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at the main components of the overall index, shipments and new orders grew more slowly, while employment growth held steady. Other indicators varied but suggested continued solid activity. Manufacturers reported that backlogs grew at a slightly slower pace and that increases in capacity utilization and delivery times eased somewhat, while finished goods inventories grew at a somewhat slower rate.”
Index readings above zero show expansion, while numbers below zero indicate contraction.
The manufacturing index decreased to 18 in January from 25 in December.
Shipments slipped to 23 from 30, the Fed reported. Volume of new orders fell to 17 from 29, while the backlog of orders index declined to 5 from 14.
The capacity utilization index decreased to 18 from 21, while the vendor lead time index dipped to 15 from 17. The number of employees index remained 14, while the average workweek index was 20 after a 15 reading last month, and the wages index slid to 13 from 16.
As for future outlook (six months from now), the shipments index was 38, off from 43 last month, while the volume of new orders index decreased to 40 from 47, and backlog of orders fell to 18 from 25. Capacity utilization decreased to 34 from 41, the vendor lead time index slipped to 12 from 17, the number of employees index decreased to 17 from 23, while the average workweek index was at 13, an increase from 11 the previous month, and the wages index was 44, up from 34. The capital expenditures index was 29, after 27 last month.
The finished goods inventories index slid to 7 from 11, while the raw materials index held at 9. The current trend in prices paid grew to 2.79 in January from 2.53 in December, while growing to 2.17 from 2.13 for prices received. The expected trend for the next six months decreased to 3.17 from 3.70 for prices paid, and fell to 2.34 from 2.41 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.
