Economy
Philadelphia Fed Index Shows Subdued Manufacturing Growth
Written by Sandy Williams
April 16, 2015
The Philadelphia Federal Reserve Manufacturing Business Outlook was stronger than expected in April. The index for current activity increased from 5.0 in March to 7.5, beating economist expectations of a reading of 6. The index has been in single digits so far this year indicating only modest growth.
The new orders index registered 0.7, a drop of 3 points from March indicating flat demand during the month. Shipments improved six points but were still in below the neutral reading for the second consecutive month.
Input prices were reported as unchanged by 77 percent of respondents but of the remaining 23 percent, 14 percent reported paying lower prices for raw material. Prices received were unchanged for 80 percent of respondents, with 11 percent reporting receiving lower prices
Employment levels improved compared to March with the index up 8 points to 11.5, its highest reading in five months.
Manufacturers were slightly more optimistic about future activity over the next six months. The index increased from 32.0 to 35.5 but was still well below sentiment expressed over the past year.
Manufacturers reported the stronger dollar having a slightly negative impact on business, with most of the negativity in relation to foreign sales and prices received for exports.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Consumer auto delinquencies: Warning sign for consumer health?
The Consumer Federation of America estimates rising total auto debt at a staggering $1.66 trillion, along with increasing repossessions and a sharp increase in delinquencies.
Beige Book: Regional market growth remains mostly flat
Economic growth in some US regions in September was offset by challenges in others, causing the market to appear largely unchanged overall, according to the Federal Reserve’s latest Beige Book report.
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.
Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.