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Richmond Fed's Current Activity fell 5 to 20
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Manufacturing activity in the central Atlantic region expanded for the sixth straight month, according to the Richmond Fed's latest survey. Looking at the main components of activity, shipments and new orders grew more slowly, while employment growth held steady. Other indicators varied slightly but suggested continued solid activity. District contacts reported that backlogs grew at a slightly slower pace and that increases in capacity utilization and delivery times eased somewhat, while inventories grew at a somewhat higher rate.
Looking forward, manufacturers' optimism remained in place in March. Survey contacts at an increasing number of firms looked for solid growth in shipments, new orders, backlog of orders, capacity utilization, and capital expenditures in the next six months.
Survey measures of current prices revealed that both prices of raw materials and finished goods grew at a slightly slower pace in March. Respondents indicated that during the next six months they expected growth in raw materials prices to quicken, but they expected little change in finished goods prices from what they had anticipated last month.
In March, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — fell five points to 20 from February's reading of 25. Among the index's components, shipments decreased six points to 23, new orders dropped seven points to finish at 20, while the jobs index held firm at 16.
Other indicators also suggested continued solid growth. The index for capacity utilization edged down three points to 14 and the backlogs of orders grew more slowly, losing four points to 8. The delivery times index inched down four points to end at 16, while our gauges for inventories were somewhat higher in March. The finished goods inventory index inched up four points in March to end at 14, and the raw materials inventories index added one point to 9.
Posted: March 22, 2011 Tuesday 10:00 AM