Input Stories

In April, Philadelphia’s regional manufacturing activity declined after modest increases the previous month. The index for current general business activity fell from 12.5 to -26.4, the third consecutive monthly decline in the index and the lowest reading since April 2023. Nearly 39% of firms reported decreased activity this month, while 12.5% saw increases in April compared to 18.1% reporting increases in March. Meanwhile, 40.6% experienced no change. The indexes for new orders and shipments both plummeted from 8.7 and 2.0 to -34.2 and -9.1, respectively. On the other hand, employment expectations were steady, following a surge in March. The average employee workweek index dropped from 8.7 to -12.7.

The prices paid index edged up from 48.3 to 51.0, the highest reading since July 2022, while the prices received index ticked up one point to 30.7. As has been the case for many months, the prices received index remains lower than the prices paid index, indicating manufacturers have been absorbing a sizable portion of those higher costs paid.

Looking ahead, future indicators were mixed. The index for future general business activity rose from 5.6 to 6.9 in April. Compared to the previous month, a slightly higher proportion of firms (29.0%) expect decreases in activity, compared to last month’s reading of 25.8%, while 35.9% expect activity to improve. The future new orders index ticked up from 2.3 to 6.6 following March’s plunge, while the future shipments index edged down from 11.3 to 5.0. Meanwhile, the index for future employment tumbled from 17.3 to -0.6, the lowest reading since February 2016. The capital expenditures index fell from 13.4 to 2.0. The future prices paid index rose from 44.6 to 63.1, while the future prices received index surged from 39.7 to 67.7, indicating manufacturers hold heightened concerns about rising future costs.