Philly Fed Index Unexpectedly Indicates Growth In March
March 17 2016 - 5:16AM
RTTF2
Philadelphia-area manufacturers reported an unexpected
improvement in business conditions in the month of March, the
Federal Reserve Bank of Philadelphia revealed on Thursday.
The Philly Fed said its diffusion index for current activity
jumped to a positive 12.4 in March from a negative 2.8 in February,
with a positive reading indicating growth in regional manufacturing
activity.
The index recorded its first positive reading in seven months,
while economists had expected a much more modest increase to a
negative 1.4.
The bigger than expected increase by the headline index was
partly due to a rebound in new orders, as the new orders index
surged up to a positive 15.7 in March from a negative 5.3 in
February.
The shipments index also soared to 22.1 in March from 2.5 in
February, suggesting a substantial acceleration in the pace of
growth.
On the other hand, the Philly Fed noted that regional
manufacturing firms continued to report overall weak
employment.
The number of employees index increased but remained at a
negative 1.1 in March compared to a negative 5.0 in February.
The report also said the prices paid index inched up to a
negative 0.9 in March from a negative 2.2 in February, while the
prices received index climbed to a positive 3.5 from a negative
4.5.
Looking ahead, the Philly Fed said the survey's future
indicators showed significant improvement, with the diffusion index
for future general activity jumping to 28.8 in March from 17.3 in
February.
The New York Fed released a separate report on Tuesday that also
showed an unexpected improvement in regional manufacturing
activity.
The index of New York manufacturing activity climbed to a
positive 0.6 in March from a negative 16.6 in February. Economists
had expected the index to rise to a negative 11.3.
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