NEW YORK – “Manufacturing activity in the central Atlantic region advanced modestly in October, following a slight pullback in September,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at the main components of activity, shipments and employment edged back into positive territory while the volume of new orders posted solid gains. Other indicators varied. District contacts reported that growth in order backlogs was virtually unchanged, while delivery times grew more slowly. Furthermore, manufacturers reported that capacity utilization grew at a faster pace, while inventories grew at a slightly slower rate.”
The manufacturing index increased to positive 5 in October from negative 2 in September.
Shipments reversed to positive 3 from negative 4, the Fed reported. Volume of new orders rose to 8 from zero, while the backlog of orders index dropped to negative 12 from negative 11.
The capacity utilization index increased to 6 from zero, while the vendor lead time index fell to 5 from 8. The number of employees index increased to positive 4 from negative 3, while the average workweek index was zero after a zero reading last month, and the wages index grew to 12 from 8.
As for future outlook (six months from now), the shipments index was 38, unchanged from 38 last month, while the volume of new orders index inched up to 43 from 42, and backlog of orders rose to 25 from 20. Capacity utilization decreased to 31 from 33, the vendor lead time index increased to 7 from 6, the number of employees index gained to 12 from 10, while the average workweek index was at 9, a decrease from 20 the previous month, and the wages index was 19, off from 24. The capital expenditures index was 16, after 8 last month.
The finished goods inventories index slid to 6 from 15, while the raw materials index fell to 10 from 13. The current trend in prices paid grew to 1.54 in October from 1.31 in September, while growing to 1.10 from 1.06 for prices received. The expected trend for the next six months decreased to 2.40 from 2.46 for prices paid, and rose to 1.44 from 1.17 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.
