While the Federal Reserve Bank of Philadelphia released a report on Thursday showing a slowdown in the pace of regional manufacturing growth in the month of October, the pace of growth slowed less than economists had expected.
The Philly Fed said its index for current manufacturing activity in the region fell to 9.7 in October from 12.8 in September, but a positive reading indicates continued growth. Economists had expected the index to drop to 7.0.
The drop by the Philly Fed Index came despite a significant acceleration in the pace of new order growth as well as a rebound in shipments.
The new orders index jumped to 16.3 in October from 1.4 in September, while the shipments index surged up to a positive 15.3 from a negative 8.8.
The Philly Fed said the delivery times, unfilled orders, and inventories indexes remained weak, however, with all registering negative readings.
Firms also reported continued weakness in manufacturing employment, although the number of employees index edged up to a negative 4.0 in October from a negative 5.3 in September.
The report also said the prices paid index tumbled to 7.0 in October from 20.6 in October, while the prices received index slumped to a negative 3.7 from a positive 9.7.
Looking ahead, the Philly Fed said firms remain optimistic about business conditions over the next six months, and prospects for employment continue to be upbeat.
The diffusion index for future activity fell to 32.6 in October from 37.5 in September but remains slightly above its average reading over the past 12 months.
On Monday, the New York Fed released a separate report showing that regional manufacturing activity has unexpectedly seen a continued decline in October.
The New York Fed said its general business conditions index slid to a negative 6.8 in October from a negative 2.0 in September.
The drop by the general business conditions index came as a surprise to economists, who had expected the index to rise to a positive 1.0.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
