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Richmond Fed's Current Activity Index gained 10 to 8
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Manufacturing activity in the central Atlantic region advanced moderately in June after contracting at a less pronounced rate in May, according to the Richmond Fed’s latest survey. All broad indicators — shipments, new orders and employment — landed in positive territory. Most other indicators showed similar notable improvement. District contacts reported that backlogs were down but just barely, whereas capital utilization improved from May readings. The gauge for delivery times was little changed and finished goods inventories continued to grow, though at a slightly slower rate.
Looking forward, assessments of business prospects for the next six months were generally in line with last month's expectations. Contacts anticipated continued growth in shipments, new orders, and capacity utilization in the months ahead while they anticipated backlogs would grow more slowly.
Survey participants indicated that both raw materials and finished goods prices grew at a somewhat quicker rate than a month ago. Respondents expected raw materials to grow at a somewhat quicker pace in the next six months than they had anticipated last month, while they expected finished goods prices to grow at a slightly slower rate than last month's outlook.
The seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — gained ten points in June to settle at 8. Among the index's components, shipments inched up three points to 11, the gauge for new orders jumped nineteen points to finish at 9, and the jobs index added seven points to end at 4.
Most other indicators also suggested stronger activity. The index for capacity utilization returned to positive territory, picking up seven points to settle at 1, and the index for backlogs of orders gained ten points to finish at −1. The delivery times index was nearly unchanged at 1, while gauges for inventories were mixed in June. The raw materials inventory index edged up two points to finish at 9, and the index for finished goods inventories moved down four points to end at 2.
Posted: June 25, 2013 Tuesday 10:00 AM