Philly's Fed District Manufacturing Activity Eased in October
By Xavier Fontdegloria
Manufacturing activity in the Philadelphia area continued to
expand in October, albeit at a slower pace compared with the
previous month amid severe shortages related to global supply-chain
problems, according to a survey.
The index for current general activity compiled by the Federal
Reserve Bank of Philadelphia decreased to 23.8 in October from 30.7
The reading broadly matches economists expectations polled by
The Wall Street Journal, who expected the indicator to come in at
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 at their plants. A reading above zero indicates
U.S. factory output rose in the last few months amid strong
demand, but problems related to procuring components and raw
materials are keeping a lid on production.
In October, more than 40% of firms in the Philly Fed's district
reported increases in overall activity, while 17% reported
decreases compared with the previous month.
Demand for goods in the region factories accelerated. The new
orders index increased to 30.8 from 15.9 the previous month, while
the shipments index remained broadly stable at 30.0.
The employment index edged up to 30.7 from 26.3 the previous
month, the data showed.
The delivery times index rose to 32.2 from 20.4, signaling
longer delivery times amid widespread supply shortages.
The indicators for prices paid and prices received remained
elevated. The prices paid index rose to 70.3, while the prices
received index edged down to 51.1. More than 58% of the firms
reported increases in prices received for their own goods in
October, the Philadelphia Fed said.
The survey's future indexes signal that respondents are
optimistic regarding activity over the next six months.
The index for general activity rose to 24.2. However, the future
new orders, employment and shipments indexes all declined compared
with the levels registered the prior month.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
October 21, 2021 09:05 ET (13:05 GMT)
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