NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the sixth straight month but at a more moderate pace in October,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “All broad indicators — shipments, new orders and employment — continued to grow but at a rate below September's pace. Other indicators were mixed, however. Capacity utilization continued to grow more slowly, while backlogs fell further into negative territory. Vendor delivery times were virtually unchanged, while manufacturers reported slower growth in finished goods inventories.”
The manufacturing index declined to 7 in October from 14 in September.
Shipments fell to 11 from 22, the Fed reported. Volume of new orders dropped to 7 from 13, while the backlog of orders index slipped to negative 11, from negative 5 the prior month.
The capacity utilization index fell to 4 from 16, while the vendor lead time index rose to negative 2, from negative 3 the prior month. The number of employees index decreased to 2 from 5, while the average workweek index was negative 1 after a positive 15 reading last month, and the wages index slumped to negative 1 from positive 9.
As for future outlook (six months from now), the shipments index was 24, up from 20 last month, while the volume of new orders index grew to 30 from 19, and backlog of orders jumped to 21 from 9. Capacity utilization rose to 23 from 12, the vendor lead time index grew to 2 from 1, the number of employees index reversed to negative 2 from positive 3, while the average workweek index was at positive 15, up from negative 12 the previous month, and the wages index was 23, an increase from 11. The capital expenditures index was 22, up from 9 last month.
The finished goods inventories index fell to 14 from 18, while the raw materials index held at 12. The current trend in prices paid fell to 0.53 in October from 0.61 in September, while slumping to 0.18 from 0.48 for prices received. The expected trend for the next six months rose to 3.40 from 1.88 for prices paid, and to 1.73 from 0.35 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.
