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Updated: Philadelphia Fed Manufacturing Index Falls To 20.7 In October
By Kitco NewsThursday October 16, 2014 10:00 AM
Editor's Note: The article was updated to include more information from the report and comments from CIBC.
(Kitco News) - The manufacturing sector within the Philadelphia region continued to lose some momentum in October, according to data from Philadelphia Federal Reserve.
Thursday, the Philadelphia Federal Reserve said the index of its manufacturing business outlook survey, also referred to as the Philly Fed survey, fell to a level of 20.7, following September’s reading of 22.5.
According to consensus forecasts, economists expected the survey's readings to drop to about 19.9. Despite the modest drop, the report said the data “suggests continued expansion of the region’s manufacturing sector.”
Looking at the components of the report, new orders rose to 17.3, compared to September’s reading of 15.5; the employment index fell to 12.1, compared to last month’s level of 21.2; and the six-month outlook dropped to 54.5, compared the precious reading of 56.0.
At the same time, the survey noted a small rise in price pressures as the prices paid index rose to 27.6, compared to September’s reading of 27.0.
The Philadelphia regional data comes a day after the New York Fed reported a 21-point drop in its manufacturing survey. On Wednesday the regional central bank said that the Empire State manufacturing survey dropped to a reading of 6.2 in October, following September’s reading of 27.5.
Andrew Grantham, senior economist from CIBC World Markets, said that the smaller-than-expected drop in the Philly Fed survey should help to calm some fears after Wednesday’s sharp drop in the New York regional data.
By Neils Christensen of Kitco News; nchristensen@kitco.com
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