Manufacturing activity in the central Atlantic region "grew modestly in December," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index gained to positive 6 in December from negative 3 in November.
Index readings above zero show expansion, while numbers below zero indicate contraction.
Shipments climbed to zero from negative 2, the Fed reported. Volume of new orders rose to positive 8 from negative 6, while the backlog of orders index increased to zero from negative 16.
The capacity utilization index climbed to 2 from zero, while the vendor lead time index crept to positive 3 from negative 1. The number of employees index rose to 12 from zero, while the average workweek index was at positive 7 after a negative 3 reading last month, and the wages index gained to 17 from 6.
As for future outlook (six months from now), the shipments index was 24, up from 21 last month, while the volume of new orders index slid to 23 from 27, and backlog of orders dropped to 11 from 21. Capacity utilization fell to 16 from 24, the vendor lead time index rose to positive 8 from negative 2, the number of employees index increased to 16 from 11, while the average workweek index was at 4, off from 12 the previous month, and the wages index was 22, after 22 last month. The capital expenditures index was 23 after 6 last month.
The finished goods inventories index grew to 27 from 20, while the raw materials index slid to 23 from 29 the previous month.
The current trend in prices paid crept to 0.67 in December from 0.61 in November, while growing to positive 0.27 from positive 0.22 for prices received. The expected trend for the next six months rose to 1.60 from 1.21 for prices paid, and increased to 1.18 from 1.09 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.
