Manufacturing activity in the United States’ central Atlantic region fell again in November, despite relatively strong inflation indications, according to a survey released Tuesday by the Federal Reserve Bank of Richmond.
The indicator for the Fifth District Index of Manufacturing Output rose to negative nine this month from negative ten in Oct. and zero in Sept. Numbers above zero indicate expansion in the factory sector, whereas lower scores imply contraction. For the last seven months, the poll has indicated a halt or decline in factory activity.
According to Econoday, economists predicted a larger improvement to minus one.
Two of the three indicators that comprise the headline composite indicator declined. The shipments index declined to negative eight from minus three, marking the second consecutive month of contraction. After remaining at zero in Oct. and Sept, the index monitoring the number of employees fell to -1.
The third component, which measures new order volume, increased but stayed in contraction area. Following last month’s measurement of minus 22, this month’s measurement was minus 14.
Inflation was uneven. Prices paid declined, implying that companies spent 10.19 percent more for components and materials over the previous year, down from 12.81 percent in October and 10.34 percent in Sept. The prices obtained index, on the other hand, increased to 9.91 percent from 8.62 percent in October and 7.66 percent in September, demonstrating that area manufacturers are successfully raising prices for their clients.
Predictions for inflation six months from now suggest that companies expect prices to continue rising at a strong pace, but at a much slower rate than the current rate. Businesses anticipate a 5.11 percent increase in costs, down from a 6.08 percent increase in October. They anticipate a 5.29 percent increase in costs, up from a 4.8 percent increase predicted last month.