NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the fifth consecutive month,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at the main components of activity, shipments were virtually unchanged, while employment grew at a modest pace, and new orders grew more slowly. Other indicators varied. Growth in backlogs moderated considerably this month and capacity utilization fell below its all-time high readings seen in April and May. Vendor lead-time continued to grow at a solid pace, while inventories grew at a somewhat slower rate.”
The manufacturing index decreased to 23 in June from 26 in May.
Shipments slipped to 31 from 32, the Fed reported. Volume of new orders fell to 25 from 36, while the backlog of orders index dropped to 3 from 16.
The capacity utilization index slipped to 21 from 27, while the vendor lead time index rose to 17 from 14 the prior month. The number of employees index increased to 9 from 4, while the average workweek index was 15 after a 13 reading last month, and the wages index slumped to 10 from 20.
As for future outlook (six months from now), the shipments index was 40, down from 55 last month, while the volume of new orders index dipped to 38 from 50, and backlog of orders rose to 22 from 19. Capacity utilization declined to 35 from 45, the vendor lead time index grew to 17 from 12, the number of employees index decreased to 11 from 19, while the average workweek index was at 9, a decrease from 21 the previous month, and the wages index was 25, down from 34. The capital expenditures index was 25, after 20 last month.
The finished goods inventories index slid to 7 from 9, while the raw materials index fell to 4 from 6. The current trend in prices paid slid to 2.31 in June from 2.33 in May, while growing to 2.39 from 1.83 for prices received. The expected trend for the next six months decreased to 1.51 from 2.69 for prices paid, and to 0.65 from 1.29 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.
