Posted on 09/28/2011 6:41:38 AM PDT by Free Vulcan
Manufacturing activity in the central Atlantic region contracted at a less pronounced rate this month, according to the Richmond Fed's latest survey. Looking at the main components of activity, employment grew at a slightly quicker rate, while shipments exhibited more moderate weakness and new orders slipped further into negative territory. Evidence of diminished weakness was also reflected in most other indicators. District contacts reported that backlogs, capacity utilization, and delivery times remained negative but improved from August's readings. Manufacturers reported somewhat quicker growth in finished goods inventories.
Looking forward, manufacturers' assessments of business prospects for the next six months were more optimistic in September. Contacts at more firms anticipated that shipments, new orders, backlogs, and capacity utilization would grow more quickly during the next six months than they expected in August, while growth in capital expenditures would be slower.
Survey assessments of current prices revealed that raw materials grew at a somewhat slower rate in September than a month ago, while finished goods prices grew at a slightly faster pace. Over the next six months, respondents expected growth in raw materials prices to rise roughly on pace with August's expectations. They also anticipated price growth in finished goods to increase more slowly.
In September, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — increased four points to −6 from August's reading of −10. Among the index's components, shipments gained fifteen points to −2, new orders dropped six points to finish at −17, and the jobs index moved up six points to 7.
Most other indicators also suggested more moderate weakness. The index for capacity utilization picked up three points to −11 and the backlogs of orders edged up two points to finish at −23. Additionally, the delivery times index added two points to end at −2, while our gauges for inventories were mixed in September. The raw materials inventories index was virtually unchanged at 18, while the finished goods inventory index gained five points to end at 22.
The ship is still sinking, only more slowly.
How wonderful. I’m greatly encouraged.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.