Philadelphia Fed Manufacturing Index Plunges To 11.9 In August
(Kitco News) - The index for current general activity in the Philadelphia Federal Reserve’s manufacturing business outlook survey collapsed to 11.9 in August from 25.7 in July, suggesting much slower economic growth, the regional bank said Thursday.
The consensus expectations compiled by news organizations were projecting a reading of somewhere around 21.9.
This monthly drop of 14 points marked the lowest reading in 21 months, the Philadelphia Fed said.
“Nearly 32 percent of the manufacturers reported increases in overall activity this month, while 20 percent reported decreases,” the report said while still being positive. “Expectations for the next six months remained optimistic, with most broad future indicators showing improvement.”
The index for new orders fell 22 points to 9.9. The shipments index rose to 16.6. The future employment index increased five points to 32.1, while the index for the average workweek fell three points to 10.7.
On the inflation front, the index for prices paid slid to 55.0 from 62.9. The index for prices received fell to 33.2 from 36.3.