Philly Fed's District Factory Activity Expands in August
By Maria Martinez
Business activity among manufacturers in the Philadelphia area
expanded in August after two consecutive negative readings, but
demand continues to be weak, data from the Federal Reserve Bank of
Philadelphia showed Thursday.
The index for current general activity of the Business Outlook
Survey rose to 6.2 in August from minus 12.3 in July. Economists
polled by The Wall Street Journal expected the indicator to come in
at minus 5.0.
Although the general activity index turned positive, it was low,
and the new orders index remained negative, the Philly Fed
The Philadelphia Fed survey polls manufacturing firms in the
Third Federal Reserve District--which covers eastern Pennsylvania,
southern New Jersey and Delaware--every month about the direction
of change in business activity.
The majority of firms surveyed, or 47%, reported no change in
current activity this month, while 26% of firms reported increases
in activity and 20% said business activity decreased.
Demand remained weak, with the new orders index rising to minus
5.1 from minus 24.8 the previous month, but still in negative
territory for the third consecutive month. The shipments index rose
to 24.8 in August from 14.8 in July.
The employment index rose to 24.1 from 19.4, suggesting firms in
the area continued to add workers.
The delivery times index rose to 2.7 from minus 10.2 the
previous month and the unfilled orders index rose to minus 1.8 from
minus 10.4 in July.
Inflation pressures eased for a fourth consecutive month. The
prices paid index decreased to 43.6 in August from 52.2 in July,
and the prices received index fell to 23.3 from 30.3.
Firms in the region remained pessimistic about their outlook for
the next six months, the report said. The index for future general
activity rose to minus 10.6 from minus 18.6, but in negative
territory it continues to suggest that firms expect overall
declines six months from now.
Write to Maria Martinez at firstname.lastname@example.org
(END) Dow Jones Newswires
August 18, 2022 09:17 ET (13:17 GMT)
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