Prior -0.4
Details:
New orders 27.3 versus -1.7 priorShipments 14.9 versus 4.9 last monthUnfilled orders 10.5 versus -2.5 last monthDelivery times 10.8 versus -10.4 last monthInventories 23.0 versus 6.6 last monthPrices paid 53.2 versus 47.9 prior Prices received 20.3 versus 26.3 last monthNumber of employees 7.9 versus -2.8 prior Average employee workweek -6.5 versus 1.2 last month
Six-months from now indicators:
6 month index 50.2 vs 53.2 priorCapex index 6-month forward 41.2 versus 30.9 last monthNew orders 60.8 versus 53.5 last monthShipments 60.3 versus 45.7 last monthUnfilled orders 17.3 versus 19.2 last monthDelivery times 2.5 versus 1.0 last monthInventories 10.0 versus 11.8 last monthPrices paid 63.2 versus 70.0 last monthPrices received 67.2 versus 60.5 last monthNumber of employees 30.8 versus 31.7 last monthAverage employee workweek 34.3 versus 18.4 last month
The report was stronger than expected and carries a hawkish bias. Manufacturing activity improved sharply, with new orders, shipments, unfilled orders, and inventories all rising significantly from the prior month. At the same time, delivery times lengthened and prices paid jumped, pointing to renewed inflation pressures in the sector. Employment also improved, although the decline in the average workweek tempered some of the strength. Overall, the data suggest stronger economic activity and firmer inflation pressures, which is supportive for the U.S. dollar and reinforces the Fed’s cautious stance on inflation.
What is the Philly Fed Index?
The Philadelphia Fed Manufacturing Survey, also known as the Philly Fed Index, is one of the earliest monthly indicators of manufacturing sector health in the United States. Published by the Federal Reserve Bank of Philadelphia, it surveys manufacturers in the Third Federal Reserve District, covering eastern Pennsylvania, southern New Jersey, and Delaware. Readings above zero indicate expanding activity, while readings below zero signal contraction. The survey is closely watched by economists and market participants because it often serves as a leading indicator for the national ISM Manufacturing Index released later each month.
This article was written by Greg Michalowski at investinglive.com.