Manufacturing activity in the Philadelphia area grew at a slower rate in the month of October, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday, although the index of activity in the sector fell by slightly less than expected.
The Philly Fed said its diffusion index for current activity edged down to 20.7 in October from 22.5 in September, with a positive reading still indicating an increase in regional manufacturing activity. Economists had expected the index to dip to a reading of 20.0.
The pullback by the headline index was partly due to a slowdown in shipment growth, as the shipments index fell to 16.6 in October from 21.6 in September.
The number of employees index also tumbled to 12.1 in October from 21.2 in September, indicating a notably slower pace of job growth in the Philadelphia-area manufacturing sector.
On the other hand, the report showed that new orders index climbed to 17.3 in October from 15.5 in the previous month.
The prices received index also jumped to 20.8 in October from 8.8 in September, while the prices paid index crept up to 27.6 from 27.0.
Looking ahead, the Philly Fed said indicators for future manufacturing conditions fell from higher readings but continued to reflect general optimism about growth in activity and employment over the next six months.
The report said the future general activity index fell to 54.5 in October from 56.0 in September, pulling back further off the 22-year hit set in August.
On Wednesday, the New York Fed released a separate report showing that activity in the New York manufacturing sector grew at a substantially slower rate in October.
The New York Fed said its headline general business conditions index tumbled to 6.2 in October from 27.5 in September. Economists had expected the index to show a much more modest decrease to 20.5.
The bigger than expected pullback by the index came after it jumped to a nearly five-year high in the previous month.
by RTT Staff Writer
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Philly Fed Index Indicates Slower Growth In October
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