Philly Fed Manufacturing Gauge Surges, Suggesting Factory Revival
The indexes for new orders, employment, and shipments all turned positive in July.
The indexes for new orders, employment, and shipments all turned positive in July.
The latest sign that the economy is buckling under the weight of high inflation and rising interest rates.
The outlook turned negative for the first time since December 2008, when the national economy was deep in the financial crisis.
The forward-looking measure of prices paid by manufacturers jumped to its highest level in decades.
The latest Philly Fed manufacturing survey showed widespread inflation amid softening demand growth.
Inflationary pressures in hte Philly Fed survey are at levels we haven’t seen since the Carter years.
The Philly Fed said the prices-paid component of its monthly manufacturing index rose 7.7 points to 76.8 in May, a big jump for the index and the highest level since March 1980.
The Philly Fed’s manufacturing activity index soared to 51.8 in March from 23.1 in the prior month. That’s the best reading since 1973.
The Philadelphia Fed’s survey showed that manufacturing continued to grow at a faster pace than expected.
Regional Fed surveys show the manufacturing sector is slowing.
The Philly Fed said the results indicate “widespread optimism” about the next six months.
Days after the New York Fed’s survey pointed to a strengthening manufacturing sector, the Philly Fed survey rose to one of the best readings in years.
Another bullish sign for the economy: manufacturing appears to be regaining its footing and expanding once more.
New orders and shipments improved but a rising share of manufacturers say general conditions are negative.
The latest reading of manufacturing in the Philly Fed region suggests that the worst may be over for the manufacturing sector.
After slumping in June, the Philly Fed’s reading of economic conditions saw the biggest rebound in a decade.
A much worse than expected reading from the Philadelphia Fed’s survey of manufacturing businesses for June.|
Manufacturing activity rebounded in March after plunging in February. There are no signs of tariff-led price increases.