NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the seventh straight month but was virtually flat on balance this month,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at the main components of activity, growth in shipments and new orders tapered off, while employment returned to negative territory after being positive for the last two months. Other indicators were generally in line with a month ago. Capacity utilization continued to grow more slowly, while backlogs edged slightly lower than a month ago. Vendor delivery times were virtually unchanged, while manufacturers reported slower growth in inventories.”
The manufacturing index declined to 1 in November from 7 in October.
Shipments fell to 6 from 11, the Fed reported. Volume of new orders dropped to 3 from 7, while the backlog of orders index slipped to negative 12, from negative 11 the prior month.
The capacity utilization index fell to 2 from 4, while the vendor lead time index rose to negative 1, from negative 2 the prior month. The number of employees index decreased to negative 9 from positive 2, while the average workweek index was negative 6 after a negative 1 reading last month, and the wages index slumped to negative 5 from negative 1.
As for future outlook (six months from now), the shipments index was 24, unchanged from last month, while the volume of new orders index fell to 28 from 30, and backlog of orders slipped to 12 from 21. Capacity utilization held at 23, the vendor lead time index grew to 3 from 2, the number of employees index rose to zero from negative 2, while the average workweek index was at 16, up from 15 the previous month, and the wages index was 24, an increase from 23. The capital expenditures index was 22, unchanged from last month.
The finished goods inventories index fell to 12 from 14, while the raw materials index slid to 10 from 12. The current trend in prices paid rose to 1.02 in November from 0.53 in October, while climbing to 0.22 from 0.18 for prices received. The expected trend for the next six months fell to 2.70 from 3.40 for prices paid, and to 1.35 from 1.73 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.
