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Central Atlantic manufacturing gains

Richmond -- Manufacturing activity rose for the sixth consecutive month in the central Atlantic states, the Richmond, Va., Federal Reserve Bank said Tuesday.

The report from the Fifth Federal Reserve District said the pace of expansion slowed in October compared with September with the broadest measurements -- shipments, new orders and employment -- rising slower than they did a month ago.

The Fed survey said the outlook for six months down the road was "generally more positive since our last report." The optimism is tempered by worries that prices for raw materials will escalate faster than expected in the September survey.

Prices manufacturers paid for raw materials at an annual rate grew 0.53 percent in October, a decline from September's annual rate of 0.61 percent. However, producers expect prices to rise at a rate of 3.4 percent in the future, faster than the expectations a month ago, which anticipated a rise of 1.88 percent on an annual basis.

Copyright 2009 by United Press International.

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