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Richmond Fed's Current Activity Index up 7 to 14
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Manufacturing activity in the central Atlantic region advanced somewhat faster in April following slightly slower growth in March, according to the Richmond Fed's latest survey. A significant increase in the shipments component pushed the overall index higher, while employment grew at a rate above March's pace and growth in new orders held nearly steady. Most other indicators also suggested solid activity. District contacts reported capacity utilization grew more quickly, while backlogs grew more slowly. In addition, manufacturers reported that delivery times lessened, while inventories grew at a somewhat higher rate.
Looking ahead, manufacturers' optimism remained in place in April. Contacts at more firms anticipated that shipments, new orders, backlogs, capacity utilization, and capital expenditures would continue to grow at a solid pace in the months ahead.
Survey assessments of current prices revealed that raw materials prices grew at a somewhat quicker rate in April than a month ago, while finished goods prices grew more slowly. Over the next six months, respondents expected growth in finished goods prices to rise at a somewhat faster pace than they had anticipated last month, while they expected raw materials prices to grow at a slower rate.
In April, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — advanced seven points to 14 from March's reading of 7. Among the index's components, shipments jumped sixteen points to 18, new orders edged up two points to end at 13, and the jobs index moved up four points to 10.
Most other indicators also suggested stronger activity. The capacity utilization indicator gained nine points to finish at 15, while the backlogs index eased two points to 2. Additionally, the delivery times index lost three points to 8, while our gauges for inventories were somewhat higher in April. Indexes for both finished goods and raw materials inventories each added three points to finish at 7 and 17, respectively.
Posted: April 24, 2012 Tuesday 10:00 AM