By Xavier Fontdegloria
Manufacturing activity in the U.S. central Atlantic region rebounded in March after growing marginally in February, according to a survey from the Federal Reserve Bank of Richmond released Tuesday.
The Fifth District Survey of Manufacturing Activity’s index increased to 13 in March from one in February, above economists’ consensus forecast of three in a The Wall Street Journal poll. A positive reading suggests that factory activity expanded over the month.
The index is compiled by surveying manufacturing firms across the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia.
All of the three component indexes which form the composite indicator increased compared with the previous month and were in positive territory, the Richmond Fed said.
The new orders index rose to 10 from minus three the previous month, and the shipments index also swung to expansion, to nine from minus 11.
The employment index increased to 23 from 20, signaling that companies in the area continued to add jobs.
The backlog of orders index turned positive, while the vendor lead time index edged down slightly to 44. Both indexes signal little improvement in supply-chain bottlenecks.
The index for both finished goods and raw materials inventories remained low, and firms expected that to persist for the foreseeable future, the Richmond Fed said.
The average growth rate of prices paid remained elevated. The prices paid index fell in March for the third consecutive month, while the price received index edged up slightly in the month.
Manufacturers in the area were less optimistic about the short-term outlook. The future indexes for shipments, new orders and employment all fell, according to the report.
Write to Xavier Fontdegloria at [email protected]
