The numbers: The Philadelphia Federal Reserve’s enterprise exercise index fell barely to 19.4 in August from 21.9 within the prior month, marking the fourth consecutive month-to-month decline because the index hit a roughly 50-year excessive in April, the regional financial institution stated Thursday.
Economists polled by the Wall Road Journal anticipated a 22 studying. Any studying above zero signifies growth within the manufacturing sector.
What occurred: The gauge of latest orders elevated 6 factors to 22.8 from final month, whereas the shipments index fell 6 factors to 18.9.
Unfilled orders fell to 7 from 19 in July.
The studying of the six-month enterprise outlook fell to 33.7 from July’s studying of 48.6.
The index of the variety of staff rose to 32.6 from 29.2 final month, the regional financial institution stated.
The costs-paid index edged larger to 71.2 from July’s studying of 69.7 , whereas the prices-received index added 7 factors to 53.9 in August, the best studying since Might of 1974.
Huge Image: Manufacturing facility exercise within the area continued to indicate strong progress, however rising costs continued to weigh on the outlook for the manufacturing sector. Companies reported that they anticipated to have the ability to go on worth will increase to their prospects and the lower in unfilled orders steered some easing of provide constraints.
The numbers echo a report from the New York Fed displaying regional manufacturing exercise progress additionally slowing from a document excessive in July.
What economists are saying: “The takeaway right here needs to be that, pandemic-related volatility apart, the extent of this index stays fairly strong (and above the place it was working pre-pandemic in 2019), which is in step with different proof regarding the manufacturing sector,” wrote Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez, Inc. “Costs paid and provider deliveries readings level to ongoing issues with provide chains (together with labor availability) and continued upward stress on the worth of many inputs.”
Market response: Inventory index futures
have been headed decrease earlier than the beginning of commerce Thursday as traders parsed minutes from the most recent Fed assembly that steered tapering of central financial institution’s bond-buying program would start later this yr.
https://www.marketwatch.com/story/philly-fed-factory-index-falls-for-fourth-straight-month-amid-rising-prices-11629378544?rss=1&siteid=rss | Philly Fed manufacturing facility index falls for fourth straight month amid rising costs