Manufacturing activity in the central Atlantic region "continued to soften in September, but somewhat less so than in August," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, although the manufacturing index narrowed to negative 8 in September from negative 11 in August.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments climbed to negative 4 from negative 14, the Fed reported. Volume of new orders narrowed to negative 7 from negative 20, while the backlog of orders index crept to negative 20 from negative 21.
The capacity utilization index rose to negative 11 from negative 19, while the vendor lead time index held at 5. The number of employees index declined to negative 13 from positive 7, while the average workweek index was at positive 1 after a negative 4 reading last month, and the wages index slipped to 13 from 21.
As for future outlook (six months from now), the shipments index was 26, down from 41 last month, while the volume of new orders index fell to 29 from 33, and backlog of orders dropped to 13 from 18. Capacity utilization decreased to 22 from 29, the vendor lead time index slid to 7 from 10, the number of employees index declined to 3 from 14, while the average workweek index was at 10, off from 14 the previous month, and the wages index was 32, after 38 last month. The capital expenditures index dipped to 13 from 15.
The finished goods inventories index decreased to 20 from 24, while the raw materials index dipped to 25 from 27 the previous month.
The current trend in prices paid increased to 1.10 in September from 0.96 in August, while slowing to 0.07 from 0.26 for prices received. The expected trend for the next six months increased to 1.42 from 0.96 for prices paid, and rose to 0.96 from 0.63 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.
