Philly Fed index beats forecasts in August but hiring slows down
Manufacturing activity in the US mid-Atlantic region held up better than anticipated in August, according to the results of one of the most closely-followed surveys of activity in the sector.
The Federal Reserve Bank of Philadelphia's manufacturing sector index slipped from a reading of 21.8 in July to 16.8 for August.
Economists had penciled-in a reading of 10.0.
A key sub-index linked to company's new orders improved, rising from 18.9 to 25.8, although hiring slowed down substantially, with the corresponding sub-index falling from 30.0 to 3.6.
The sub-index linked to the length of the average workweek also fell back, from 23.0 to 6.8.
"These numbers are potentially quite significant [...] We therefore expected a repeat of the June performance, when the threat of tariffs on Mexico triggered steep declines in both the Philly and Empire State indexes," said Pantheon Macroeconomics's chief economist, Ian Shepherdson.
"This time around, it seems either that firms didn't believe Mr. Trump would make good his threat - after all, he abandoned the Mexico tariff threat after just eight days - or that underlying conditions are stabilizing."