Philly Fed index ticks up more than expected
Manufacturing conditions in the Philadelphia region improved more than expected in July, according to a survey released on Thursday.
The Philadelphia Fed's index for current manufacturing activity rose to 25.7 from 19.9 in June, beating analysts' expectations for a reading of 22.0.
Meanwhile, the new orders index surged to 31.4 this month from 17.9 in June, while the shipments index fell to 24.7 from 28.7 and the prices paid index pushed up to 62.9 from 51.8. The employment index slid to 16.8 from 30.4.
The diffusion index for future general activity fell for the fourth month in a row, to 29.0 from 34.8, with more than 42% of firms expecting increases in activity over the next six months and 13% expecting declines.
Pantheon Macroeconomics economist Ian Shepherdson said the drop in the employment index "might be nothing more than noise, but a second straight soft number next month would be disconcerting.
"For now, though, note that the weighted sum of the sub-indexes is consistent with a dip in the national ISM index of a point or so, a bit better than the signal from the Empire State survey. Elsewhere, prices paid jumped by 11.1 points to 62.9 - the highest since July 200 - probably thanks in large part to the $8 jump in crude oil prices in late June. Still, we'll be happier next month if the index drops back, given that most of the rise in oil prices has reversed."