NEW YORK -- Economic activity among manufacturers in the central Atlantic region firmed this month, the Federal Reserve Bank of Richmond reported Tuesday, as its gauge of the service sector staged a recovery from neutral territory.
The bank's manufacturing general-business index advanced to 3 in December, compared to November's reading of zero.
Over the last several months, the Richmond Fed data have shown the sector mired in stagnation. Numbers above zero indicate expanding activity, while any figure below that connotes contraction.
The subindexes also showed modest signs of improvement.
The Richmond Fed's shipment index logged a two-point gain in December, rising to 3 from 1. However, the employees index bucked the trend as it slid to -4 from its showing of zero in the prior month. The new orders index, however, surged to 7 from -2 in November.
Looking out over the next six months, the shipments-expectation index tumbled nine points to 27 in December. Meanwhile, the orders-expectations index plunged 16 points, to 21.
Richmond area manufacturers saw a diminution in cost pressures. The current prices paid index fell to 0.81, a sharp fall from November's reading of 3.42, while prices received fell to 0.58 from 2.64.
The Richmond Fed surveys cover businesses in Washington D.C., Maryland, North Carolina, South Carolina, Virginia and most of West Virginia.
-By Javier E. David, Dow Jones Newswires; 212-416-4564; javier.david@dowjones.com
(END) Dow Jones Newswires
December 27, 2011 11:35 ET (16:35 GMT)
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