Economy

Philadelphia Manufacturing Growth Improves in September

Written by Sandy Williams


Manufacturing activity improved in the Philadelphia area in September according to the latest manufacturing Business Outlook Survey by the Federal Reserve Bank of Philadelphia. General activity and new orders expanded, surprising economists who expected a flat reading for the month.

The headline index increased 11 points to 12.8, marking the first time the index has had two consecutive positive increases since August 2015. New orders rose from a reading of -7.2 to 1.4 in September, however, shipments declined from 8.4 to -8.8. Delivery times and unfilled orders remained in contraction.

The inventory index registered a sharp decline, falling from -9.2 in August to -26.2 in September.

Employment levels remained weak this month with a negative reading for the ninth consecutive month and further decreases in the average workweek.

Input prices remained unchanged for 71 percent of those surveyed but 23 percent indicated higher prices. The prices paid index rose one point to 20.6. The prices received by firms were relatively unchanged for most firms surveyed in September with the prices received index up 3 points to 9.7.

Firms are optimistic that business conditions will improve over the next six months despite a moderate index decline from 45.8 in August to 37.5 in September. Thirty-four percent of firms expect to expand employment in the next six months.

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