NEW YORK – “Manufacturing activity in the central Atlantic region expanded for the third straight month,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “All broad indicators — shipments, new orders and employment — landed in positive territory, with manufacturers noting their first increase in worker numbers since October 2009. Other indicators were also positive. Backlogs increased for the first time since August 2009 and capacity utilization hit an all-time high reading since the inception of the measure. Vendor lead-time grew at a considerably quicker rate — the highest reading since August 2004, indicating slower delivery times, and inventories increased at a somewhat quicker pace.”
The manufacturing index increased to 20 in April from 6 in March.
Shipments improved to 30 from 5, the Fed reported. Volume of new orders increased to 41 from 10, while the backlog of orders index reversed to positive 5 from negative 7.
The capacity utilization index surged to 27 from 3, while the vendor lead time index rose to 17, from 8 the prior month. The number of employees index increased to 13 from zero, while the average workweek index was 16 after a zero reading last month, and the wages index climbed to positive 6 from negative 3.
As for future outlook (six months from now), the shipments index was 46, up from 40 last month, while the volume of new orders index jumped to 44 from 37, and backlog of orders rose to 25 from 17. Capacity utilization jumped to 38 from 34, the vendor lead time index grew to 17 from 13, the number of employees index increased to 17 from 4, while the average workweek index was at 22, an increase from 16 the previous month, and the wages index was 43, up from 20. The capital expenditures index was 23, after 14 last month.
The finished goods inventories index rose to 13 from 6, while the raw materials index gained to 9 from 7. The current trend in prices paid slid to 2.11 in April from 2.39 in March, while rising to 2.08 from 2.00 for prices received. The expected trend for the next six months increased to 2.79 from 1.32 for prices paid, and to 1.39 from 0.20 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.
