Economy

Philadelphia Fed Reports Manufacturing at Highest Levels Since March 2011

Written by Sandy Williams


Good news from the Philadelphia Federal Reserve Bank—manufacturing activity increased from 9.3 to 22.3 in September, its highest reading in the Business Outlook Survey since March 2011. 

 

Demand for manufactured goods increased 16 points on the new order index to 21.2. Shipments picked up from a decrease last month.  Inventories and deliveries were steady while unfilled orders increased slightly. Employment levels went up in the Philadelphia area along with a longer average work week. Manufacturers reported paying more for inputs and receiving higher prices for products sold.  

The six month outlook was rosier with the future general activity index surging nearly twenty points from 38.9 to 58. About one third of employers expect to increase hiring over the next six months. In a supplemental question, manufacturers expected an average 1.6 percent growth rate in production for the third quarter and the majority of those surveyed expect increased growth in the fourth quarter.

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