News

In January, Philadelphia’s regional manufacturing activity increased overall. The index for current general business activity jumped from a revised -10.9 to 44.3, the highest reading since April 2021. Around 51% of firms reported increased activity this month, while just 6.6% saw decreases and 40.7% experienced no change. The indexes for new orders and shipments leaped to 42.9 and 41.0, respectively. Additionally, firms continued to report an increase in employment after steady job gains last month, with the employment index edging up from 4.8 to 11.9. The average employee workweek index surged from -3.7 to 20.5.

Price indexes both rose to recent highs. The prices paid index increased five points to 31.9, the highest reading since December 2022, and the prices received index jumped 24 points to 29.7. In recent months, the prices received index remained much lower than the prices paid index, indicating manufacturers were eating a sizable portion of those higher costs paid.

Looking ahead, most future indicators increased, but concerns about future costs remain. The index for future general business activity rose from a revised 33.8 in December to 46.3 in January. A higher proportion of firms (53.6%) still expected increases in activity. Additionally, the future new orders and shipments indexes rose, with the future shipments index rising to its highest point since July 2021. The index for future employment ticked up eight points to 40.4. After decreasing last month, the capital expenditures index increased 17 points to 39.0. The future prices paid index rose nine points to 67.3, while future prices received slipped one point to 53.6.