News

In September, Philadelphia’s regional manufacturing activity expanded notably following weakness in August. Rising from -0.3 to 23.2, the index for current general business activity recorded its highest reading since January. Just 16.7% of firms reported decreases in activity this month, while 39.9% noted increases. The indexes for new orders and shipments both improved, rising from -1.9 to 12.4 and from 4.5 to 26.1, respectively. Meanwhile, the employment index was little changed at 5.6, but the average employee workweek index rose 10.2 points to 14.9.

The prices paid index fell from 66.8 to 46.8, while the prices received index also declined, moving to 18.8 from 36.1. As has been the case for many months, the prices received index remained lower than the prices paid index, indicating that manufacturers have been absorbing a portion of higher costs paid.

Looking ahead, indicators showed expectations for future growth have continued to improve from previous months. After stepping up 3.5 points in August, expectations for future general business activity rose 6.5 points to 31.5 in September. A higher proportion of firms (52.2%) expect increases in activity compared to last month’s reading of 40.5%, though a higher proportion (20.8%) also anticipate activity will decline, compared to last month’s reading of 15.5%. Meanwhile, the future new orders index edged up from 39.2 to 42.4, but the future shipments index weakened from 40.3 to 31.0. The capital expenditures index fell from 38.4 to 12.5. The future prices paid index ticked up from 68.4 to 69.8, and the future prices received index jumped in September from 48.5 to 64.8. Additionally, the index for future employment increased from 12.7 to 23.7.