Mid-Atlantic manufacturers are expanding at a faster pace this
month, according to data released Thursday. Employment picked up
strongly.
The Federal Reserve Bank of Philadelphia said its index of
general business activity covering the regional factory sector
increased to 7.5 in April from 5.0 in March.
The April reading was just above the 7.2 expected by economists
surveyed by the Wall Street Journal. Readings under zero denote
contraction, and above-zero readings denote expansion.
The Philadelphia Fed report is the second of several factory
surveys conducted by Fed district banks. On Wednesday, the New York
Fed unexpectedly reported a slight contraction in business
conditions and new orders among manufacturers in its region.
In the Philadelphia district, the mood was more upbeat although
the subindexes in April remain subdued.
The new orders index slowed to 0.7 this month from 3.9 in March.
The shipments index rebounded to a still weak -1.8 from -7.8 in
March.
The employees index, however, jumped to 11.5 this month compared
with 3.5 in March and 3.9 in February. The workweek index advanced
to 3.4 from -11.4.
Cost pressures remain contained and few companies are raising
their own selling prices. The prices-paid index fell to -7.5 from
-3.0 in March. The prices-received index edged up to -4.1 from
-6.4.
Philadelphia manufacturers are far slightly more optimistic
about the next six months.
The general business expectations index edged up to 35.5 from
32.0 in March. The expected employment index increased to 20.6 from
14.4.
-Write to Kathleen Madigan at kathleen.madigan@wsj.com
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