Input Stories

In June, Philadelphia’s regional manufacturing activity remained weak. At -4.0, the index for current general business activity stayed the same as May. Over 28% of firms reported decreased activity this month, while 24.5% saw increases in June, an improvement from the 19.0% reporting increases in May. The index for new orders declined but remained positive, slipping from 7.5 to 2.3. On the other hand, the shipments index jumped into positive territory, rising from
-13.0 to 8.3. Nevertheless, new orders and shipments both remain below their non-recession averages. Meanwhile, employment fell into negative territory, declining from 16.5 to -9.8, the lowest reading since May 2020.

The prices paid index dropped from 59.8 to 41.4, the lowest reading since February. The prices received index also fell, from 43.6 to 29.5. 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 portion of those higher costs paid.

Looking ahead, indicators showed expectations for future growth have dimmed from the previous month. After soaring more than 40 points in May, expectations for future general business activity plummeted nearly 29 points to 18.3 in June. A lower proportion of firms (45.1%) expect increases in activity, compared to last month’s reading of 67.3%, while 26.8% anticipate activity will decline. Similarly, the future new orders index declined from 49.7 to 22.1, and the future shipments index weakened from 51.1 to 27.9. The capital expenditures index declined from 27.0 to 14.5. The future prices paid and future prices received indexes both edged up from 61.6 to 68.9 and 50.0 to 52.5, respectively. Nonetheless, the index for future employment remained stable, ticking up from 23.0 to 24.6.