UPDATE: NY, Philly Manufacturing Expanding In March
March 15 2012 - 11:43AM
Dow Jones News
Manufacturers from upstate New York down to Delaware are seeing
better business conditions this month, according to reports
released Thursday by the Federal Reserve Banks of New York and
Philadelphia.
The New York Fed said its general business conditions index rose
to 20.21 in March from 19.53 in February. The March reading was the
highest since June 2010.
The Philadelphia Fed's index of general business activity within
its area factory sector rose to 12.5 in March from 10.2 in
February. It was the highest reading since April 2011.
The surveys indicate the factory sector continues to lead the
overall U.S. recovery at the end of the first quarter.
Unlike the national factory index compiled by the Institute for
Supply Management, the regional Feds' top-line indexes aren't
composites of subindexes measuring demand, sales and payrolls.
As a result, while the two Fed general readings increased, both
regional surveys showed a slowing in new orders and shipments. And
unfilled orders shrank in both areas.
On the plus side, employment in each region strengthened this
month, a sign that New York and Philly manufacturers are hiring
more workers. Labor Department data show nationally the factory
sector has added jobs in each month from October to February.
The major difference in the two reports was the readings on
input costs. The New York Fed prices-paid index nearly doubled to
50.62 from 25.88 in February, while the Philadelphia prices-paid
index fell to 18.7 from 38.7.
Michael Trebing, senior economist who oversees the Philly
survey, says economists at the Philly Fed have noticed their prices
index leading the New York one by a month or so over the past year.
He says one possible explanation is the different timing of each
survey.
-By Kathleen Madigan, Dow Jones Newswires; 212-416-2466;
kathleen.madigan@dowjones.com