Manufacturing growth in the central Atlantic region “expanded in August,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index grew to 24 from 20.
Index readings above zero show expansion, while numbers below zero indicate contraction.
“Employment and wages continued to rise, yet manufacturing firms continued to struggle to find workers with the skills they needed, as this indicator dropped to −17, its lowest value on record,” the survey noted. “Firms expect this struggle to continue in the next six months but anticipate sustained employment growth as well.”
Shipments climbed to 23 from 16, the Fed reported. Volume of new orders rose to 25 from 22, while the backlog of orders index gained to 15 from 4.
The capacity utilization index soared to 18 from 8, while the vendor lead time index jumped to 35 from 17. The number of employees index grew to 25 from 22, the available skills fell to negative 17 from negative 16, while the average workweek index increased to 16 from 10 last month, and the wages index rose to 27 from 22.
As for future outlook (six months from now), the shipments index was 42, off from 44 last month, while the volume of new orders index increased to 40 from 39, and backlog of orders fell to 20 from 26. Capacity utilization slid to 37 from 40, the vendor lead time index grew to 23 from 19, the number of employees index climbed to 28 from 25, while the average workweek index was at 13, off from 18 the previous month, and the wages index was 43, unchanged from last month, while the available skills narrowed to negative 8 from negative 10. The capital expenditures index rose to 37 from 30.
The current trend in prices paid fell to 3.31 in August from 3.54 in July, while slowing to 1.58 from 2.24 for prices received. The expected trend for the next six months gained to 3.24 from 2.84 for prices paid, and slid to 2.63 from 2.74 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.
