News & Insights

In November, Philadelphia’s regional manufacturing activity softened overall. The index for current general business activity turned negative, falling from 10.3 to -5.5. More than 17% of firms reported increased activity this month, while slightly more than 23% reported decreases and more than 58% reported no change. The indexes for new orders and shipments also decreased but stayed positive. On the other hand, firms reported an increase in employment after reporting mostly steady job gains last month, with the employment index returning to positive territory at 8.6.

Both price indexes edged down but continue to indicate overall increases in prices. The prices paid index declined from 29.7 to 26.6 but remains at an elevated level that reflects the notable portion of firms experiencing higher input costs. The prices received index also fell and remained significantly lower than the prices paid index at 14.3, exhibiting how manufacturers are eating a sizable portion of those higher costs paid.

Looking ahead, most future indicators increased. The index for future general business activity rose markedly to 56.6, indicating growing optimism among firms. A higher proportion of firms still expected increases in activity. Additionally, the future new orders, shipments, capital expenditures and employment indexes also rose. On a more negative note, the future prices paid index increased markedly, but the future prices received rose.