Philadelphia Manufacturing Survey Remains Tepid

The Philadelphia Federal Reserve's manufacturing survey for September was released today, and the Philly Fed reported that manufacturing continues to be slower, but the rate of contraction is not as strong. The September reading of -1.9 is significantly better than August's reading of -7, and exceeds analysts' expectation of a -4 reading as well.

The new orders index improved by 7 points month-over-month in September, the first positive reading on new orders in five months.

On the employment front, more firms reported fewer employees (22%) than reported adding new employees (15%).

Prices paid for inputs rose more slowly than in August, up 8% compared with a rise of 11.2% in August. Output prices were steady.

The outlook for the next six months also improved, with 50% of firms expecting an increase in activity and only 9% expecting a downturn. Future new orders and shipments expectations each rose by 31% and the future employment index rose by 11%. Some 32% of firms expect to hire new employees in the next six months.

Paul Ausick

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