NEW YORK – “Manufacturing activity in the central Atlantic region pulled back in September after expanding during the previous seven months,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity was pushed lower as shipments and employment edged into negative territory. Other indicators also suggested softer activity. District contacts reported that the volume of new orders flattened, order backlogs turned negative, and delivery times held steady. Furthermore, manufacturers reported growth in capacity utilization flat lined, while inventories grew at a slightly quicker pace.”
The manufacturing index decreased to negative 2 in September from positive 11 in August.
Shipments slipped to negative 4 from positive 11, the Fed reported. Volume of new orders fell to zero from 10, while the backlog of orders index dropped to negative 11 from zero.
The capacity utilization index slumped to zero from 14, while the vendor lead time index held at 8. The number of employees index decreased to negative 3 from positive 12, while the average workweek index was zero after a 14 reading last month, and the wages index dipped to 8 from 13.
As for future outlook (six months from now), the shipments index was 38, up from 7 last month, while the volume of new orders index jumped to 42 from 16, and backlog of orders soared to positive 20 from negative 1. Capacity utilization increased to 33 from 10, the vendor lead time index reversed to positive 6 from negative 1, the number of employees index dipped to 10 from 11, while the average workweek index was at 20, an increase from 1 the previous month, and the wages index was 24, up from 8. The capital expenditures index was 8, after 8 last month.
The finished goods inventories index rose to 15 from 11, while the raw materials index grew to 13 from 9. The current trend in prices paid slid to 1.31 in September from 2.19 in August, while falling to 1.06 from 1.45 for prices received. The expected trend for the next six months increased to 2.46 from 2.21 for prices paid, and to 1.17 from 0.91 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.
