Research >> Economics
Richmond Fed's Current Activity up 4 to 9
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Manufacturing activity in the central Atlantic region advanced somewhat faster in November, according to the Richmond Fed's latest survey. All broad indicators — shipments, new orders and employment — posted solid gains. Other indicators were also generally positive. District contacts reported that growth in capacity utilization grew at a faster pace, while growth in order backlogs exhibited more moderate weakness than a month ago. Delivery times were virtually unchanged, while manufacturers reported that inventories grew at a somewhat higher rate.
Looking forward, manufacturers' assessments of business prospects for the next six months remained optimistic in November. Survey contacts anticipated steady growth in shipments, new orders, backlog of orders, and capital expenditures.
Survey measures of current prices revealed that both raw materials and finished goods prices grew at a slightly quicker pace in November. Respondents indicated that during the next six months they expected somewhat faster growth in both raw materials and finished goods prices from what they had anticipated last month.
In November, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — rose four points to 9 from October's reading of 5. Among the index's components, shipments rose four points to 7, new orders edged up two points to finish at 10, and the jobs index increased six points to 10.
Other indicators also suggested generally stronger activity. The index for capacity utilization moved up three points to 9, while the backlogs of orders contracted at a much slower pace, gaining nine points to −3. The delivery times index added one point to end at 6, and our gauges for inventories were somewhat higher in November. The finished goods inventory index increased ten points to 16, and the raw materials inventory index advanced five points to finish at 15.
Posted: November 23, 2010 Tuesday 10:00 AM