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Richmond Fed's Current Activity up 8 to 20
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Manufacturing activity in the central Atlantic region advanced for the third straight month, according to the Richmond Fed's latest survey. Our broadest indicators of overall activity — shipments, new orders and employment — remained in positive territory, and the rate of increase strengthened considerably from our last report. Other indicators were also positive, including backlogs and capacity utilization. Likewise, delivery times and finished goods inventories grew at a moderately quicker rate.
Looking ahead, assessments of business prospects for the next six months were generally on par with last month's readings. 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 slower rate in February than a month ago, while finished goods prices grew at a slightly quicker pace. Over the next six months, respondents expected growth in both raw materials and finished goods prices to rise at a somewhat slower pace than they had anticipated last month.
In February, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — increased eight points to 20 from January's reading of 12. Among the index's components, shipments gained eight points to 25, new orders picked up seven points to finish at 21, and the jobs index moved up nine points to end at 13.
Other indicators also suggested stronger activity. The backlogs index moved into positive territory, picking up eight points to 4 and the capacity utilization indicator advanced four points to finish at 12. Additionally, the delivery times index rose eleven points to 14, while our gauges for inventories were mixed in February. The finished goods inventories index added three points to 12, while the raw materials inventory index lost seven points to end at 11.
Posted: February 28, 2012 Tuesday 10:00 AM