The U.S. manufacturing sector is showing some surprising strength.
The Philadelphia Fed’s barometer of regional factory activity soared in July, with its indexes of new orders, shipments, and employment all turning positive.
The broadest measure of general activity rose to 13.9 in July from 1.3 in the prior month, much higher than the score of three that was forecast by economists. This was the sixth consecutive month in which the index came in above zero, the threshold indicating growth.
This was the highest reading since April’s 15.5, which was the best in two years.
The indexes for new orders orders and shipments turned positive after two months of negative growth. The employment index indicated growing payrolls for the first time since last October and hit its best reading since October of 2022.
The index of future activity rose to 38.7 from 13.8. That’s the most optimistic reading in three years.
The inflation indicators were mixed. The prices paid index edged down 3 points to 19.8, with almost 26 percent of the firms reported increases in input prices, while 6 percent reported decreases. Most reported no change.
The measure of prices charged for factory input index rose 11 points to 24.2, its highest reading since January 2023.
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