US Factory Activity Growth Kept Pace in November

Manufacturing activity in the central Atlantic region of the U.S. surged in November at broadly the same pace as in October, according to a survey compiled by the Federal Reserve Bank of Richmond released Tuesday.

The Fifth District Survey of Manufacturing Activity’s composite index in November is 11, down from 12 in October, significantly below forecast of 17 in a poll carried out by The Wall Street Journal.

The index is compiled by surveying manufacturing firms across the Fifth Federal Reserve District, which includes Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia.

Positive readings signal expansion, while negative readings indicate contraction. The shipments index increased to four from one the previous month, signaling a modest increase in shipments. The volume of new orders index dropped to five from 10, and the employment index was unchanged at 27.

Survey results also suggested that many firms increased employment and wages in November, but they struggled to find workers with the necessary skills. Survey respondents expected these trends to continue in the next six months, the Richmond Fed said.

The future indexes for shipments and new orders were unchanged at 33 and 27, respectively, while expectations for employment decreased slightly to 43 from 45 the previous month.