News

Manufacturing activity in the Fifth District remained sluggish in November. The Fifth Federal Reserve District consists of Virginia, Maryland, the Carolinas, the District of Columbia and most of West Virginia. The composite manufacturing index remained at -14 in November. Among its components, shipments decreased from -8 to -12, new orders inched down from -17 to -19, and employment rose from -17 to -10. The vendor lead time index edged down from 6 to 4 in November, and firms continued to report declining backlogs. Companies also grew slightly more pessimistic about local business conditions, with the index remaining solidly in negative territory. The average growth rate of prices paid decreased in November, while the rate of prices received increased modestly.

Expectations for future shipments and new orders both increased further into positive territory, suggesting that firms continue to anticipate improvement in these areas. Expectations for backlogs and the outlook for future local business conditions improved, with both indicators remaining positive. Firms continue to exhibit a more cautious approach to equipment and software spending, as expectations became slightly more negative. Spending on capital expenditures also fell, remaining negative.