NEW YORK – “Manufacturing activity in the central Atlantic region stabilized in November following four months of contraction,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity steadied as a slightly positive reading for shipments offset a slight decrease in new orders and a flat reading in employment. Modest improvement was also evident in most other indicators. District contacts reported continuing moderate weakness in backlogs, but noted that capacity utilization edged lower. Delivery times grew at a somewhat quicker pace, while inventories grew at a slightly slower rate.”
The manufacturing index increased to zero in November from negative 6 in October.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments rose to positive 1 from negative 6, the Fed reported. Volume of new orders grew to negative 2 from negative 5, while the backlog of orders index increased to negative 10 from negative 15.
The capacity utilization index slipped to negative 6 from negative 4, while the vendor lead time index rose to 5 from 2. The number of employees index climbed to zero from negative 7 while the average workweek index was zero after a negative 1 reading last month, and the wages index gained to 10 from 5.
As for future outlook (six months from now), the shipments index was 36, up from 28 last month, while the volume of new orders index increased to 37 from 25, and backlog of orders climbed to 17 from 9. Capacity utilization gained to 30 from 21, the vendor lead time index fell to 6 from 10, the number of employees index rose to 22 from 13, while the average workweek index was at 3, unchanged from 3 the previous month, and the wages index was 28, off from 19 last month. The capital expenditures index was 15, after 13 last month.
The finished goods inventories index slid to 18 from 23, while the raw materials index fell to 15 from 25 the previous month. The current trend in prices paid rose to 3.42 in November from 2.20 in October, while gaining to 2.64 from 1.75 for prices received. The expected trend for the next six months decreased to 2.79 from 3.41 for prices paid, and held at 1.46 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.
