Manufacturing Activity in Philly Fed's District Accelerates in January
By Xavier Fontdegloria
Manufacturing activity in the Philadelphia area accelerated its
expansion pace in January compared with the previous month, data
from a report released by the Federal Reserve Bank of Philadelphia
The index for current general activity stood at 26.5 in January,
up from a revised 9.1 reading in December. The indicator compares
with economists' forecasts in a The Wall Street Journal poll, which
expected it to come in at 10.5.
The survey polls manufacturers in the Third Federal Reserve
District--which covers eastern Pennsylvania, southern New Jersey
and Delaware--about the direction of change in overall business
activity and in various other measures at their plants on a monthly
The index signals that overall manufacturing activity in the
region expanded in January for the eighth consecutive month, after
a strong rebound in June driven by the reopening of businesses that
slowed over the following months.
"Manufacturing activity in the region continued to grow," the
Philly Fed said.
In January, 40% firms reported increases in activity, while 13%
The survey's current indicators for general activity, new
orders, and shipments increased notably this month, the report
The index for new orders increased 28 points to 30.0, its
highest reading in three months, while the current shipments index
rose 11 points to 22.7 in January.
More firms reported increases in manufacturing employment in
January. The current employment index, which has remained positive
for seven consecutive months, increased 17 points to 22.5.
The prices paid index increased 21 points to 45.4 and the prices
received index also climbed 21 points to 36.6.
The survey's indicators for future general activity improved
this month, and although other future indicators declined somewhat,
they remained at elevated readings, the report said.
The diffusion index for general activity over the next six
months increased 10 points to 52.8 in January. The future new
orders index held steady at 47.5, and both the future shipments and
employment indexes declined slightly compared with December.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
January 21, 2021 09:09 ET (14:09 GMT)
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