NEW YORK – “Manufacturing activity in the central Atlantic region expanded at a quicker pace in December,” 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 also suggested stronger activity. District contacts reported that order backlogs returned to positive territory and capacity utilization grew at a faster pace. Manufacturers reported that delivery times grew at a somewhat higher rate, while inventories grew at a somewhat slower pace.”
The manufacturing index increased to 25 in December from 9 in November.
Shipments increased to 30 from 7, the Fed reported. Volume of new orders rose to 29 from 10, while the backlog of orders index improved to positive 14 from negative 3.
The capacity utilization index increased to 21 from 9, while the vendor lead time index gained to 17 from 6. The number of employees index increased to 14 from 10, while the average workweek index was 15 after a 9 reading last month, and the wages index rose to 16 from 8.
As for future outlook (six months from now), the shipments index was 43, up from 36 last month, while the volume of new orders index increased to 47 from 40, and backlog of orders grew to 25 from 20. Capacity utilization increased to 41 from 38, the vendor lead time index slipped to 17 from 19, the number of employees index increased to 23 from 7, while the average workweek index was at 11, an increase from 10 the previous month, and the wages index was 34, down from 37. The capital expenditures index was 27, after 24 last month.
The finished goods inventories index slid to 11 from 16, while the raw materials index fell to 9 from 15. The current trend in prices paid grew to 2.53 in November from 2.23 in November, while growing to 2.13 from 2.10 for prices received. The expected trend for the next six months increased to 3.70 from 3.30 for prices paid, and rose to 2.41 from 1.81 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.
