Philly Fed Index Indicates Continued Slowdown In Growth In October
October 17 2019 - 4:36AM
RTTF2
Growth in Philadelphia-area manufacturing activity saw a
continued slowdown in the month of October, the Federal Reserve
Bank of Philadelphia revealed in a report released on Thursday.
The Philly Fed said its diffusion index for current general
activity dropped to 5.6 in October after falling to 12.0 in
September, although a positive reading still indicates growth in
regional manufacturing activity. Economists had expected the index
to fall to 7.1.
Shipment growth showed a notable slowdown during the month, with
the shipments index slumping to 18.9 in October from 26.4 in
September.
On the other hand, the report said the new orders index crept up
to 26.2 in October from 24.8 in September, indicating modestly
faster growth.
The number of employees index also surged up to 32.9 in October
from 15.8 in September, pointing to a substantial acceleration in
the pace of job growth.
On the inflation front, the prices paid index plunged to 16.8 in
October from 33.0 in September and the prices received index slid
to 16.4 from 20.8.
The Philly Fed said the survey's future activity indexes
remained positive, suggesting continued optimism about growth for
the next six months.
The diffusion index for future general activity increased jumped
to 33.8 in October after tumbling to 20.8 in September.
Earlier this week, the New York Fed released a separate report
unexpectedly showing a modest acceleration in the pace of growth in
regional manufacturing activity in the month of October.
The New York Fed said its headline general business conditions
index edged up to 4.0 in October after dipping to 2.0 in
September.
The modest uptick came as a surprise to economists, who had
expected the general business conditions index to slip to 0.8.
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