Philly Fed manufacturing index unexpectedly turns positive
Manufacturing activity in the Philadelphia region unexpectedly expanded in September after contracting sharply the previous month, though current indicators for the industry still remain mixed.
According to the Federal Reserve Bank of Philadelphia, the current general activity index for manufacturing jumped from a seven-month low of 7.0 in August to 1.7 last month, surpassing the -1.0 reading expected by economists.
However, while 22% of firms reported increases in general activity, 20% still reported decreases while 51% reported no change.
Sub-indices for new orders and shipments both turned negative, with new orders falling 16 points to -1.5 and shipments dropping 23 points to an 18-month low of -14.3.
On the upside, manufacturers in the region on balance reported increases in employment, with the sub-index for jobs rising from -5.7 to 10.7. Still, 89% reported no change in employment levels – the highest share reporting steady employment since December 1978.
Looking ahead, 39% of firms expect activity to increase over the next six months, compared with 23% who predict a decline.