Manufacturing Area manufacturers reported generally steady activity in November. Shipments were edging up, but new orders were flat, as were order backlogs and inventories. Among the major goods-producing sectors in the District, only food processors and electrical equipment makers noted some increases in demand for their products. Several firms in the steel and metals industries cited the high value of the dollar and competition from imports as factors limiting their sales. On balance, the region's manufacturers have been reducing employment but keeping working hours steady.
Manufacturers expect a slight improvement in the next six months.
They forecast a small increase in orders, which they will be able to meet without expanding employment or working hours. Capital spending plans at plants in the region still call for increased outlays overall, but the number of firms scheduling higher spending has declined from previous months. Comments from manufacturers indicated that input costs continued on an upward trend in November, and reports of increases in electricity rates and natural gas prices have become more common. Despite the rising cost of energy and other inputs, most firms contacted recently said they have not raised prices for the products they make. Retail Retail sales in the Third District generally met or exceeded merchants' expectations for the Thanksgiving weekend.