NEW YORK – “Manufacturing activity in the central Atlantic region stalled in July after firming somewhat in June,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity was pushed lower as growth in new orders and shipments edged into negative territory. Employment, however, continued to grow but at a pace below June's rate. Other indicators also suggested softer activity. District contacts reported that backlogs and capacity utilization fell further, but noted that delivery times and raw material goods inventories grew at a somewhat quicker pace.”
The manufacturing index decreased to negative 1 in July from positive 3 in June.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments held at negative 1, the Fed reported. Volume of new orders slid to negative 5 from zero, while the backlog of orders index decreased to negative 18 from negative 11.
The capacity utilization index decreased to negative 6 from negative 2, while the vendor lead time index climbed to 8 from 4 The number of employees index slid to 4 from 14 while the average workweek index was zero after a negative 1 reading last month, and the wages index grew to 10 from 9.
As for future outlook (six months from now), the shipments index was 35, down from 43 last month, while the volume of new orders index decreased to 40 from 44, and backlog of orders rose to 25 from 19. Capacity utilization dipped to 30 from 31, the vendor lead time index inched down to 6 from 7, the number of employees index fell to 14 from 22, while the average workweek index was at 12, down from 15 the previous month, and the wages index was 30, unchanged from last month. The capital expenditures index was 16, after 22 last month.
The finished goods inventories index fell to 17 from 23, while the raw materials index rose to 18, up from 16 the previous month. The current trend in prices paid fell to 3.41 in July from 4.53 in June, while slowing to 1.18 from 1.94 for prices received. The expected trend for the next six months increased to 4.35 from 3.41 for prices paid, and grew to 2.97 from 1.93 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.
