Economic Buzz: Philly Fed Index Falls Into Contraction Zone

18 Nov 2022 , 09:26 AM

A report released by the Federal Reserve Bank of Philadelphia on Thursday showed regional manufacturing activity unexpectedly contracted at a faster rate in the month of November. The Philly Fed said its diffusion index for current activity tumbled to a negative 19.4 in November from a negative 8.7 in October, with a negative reading indicating a contraction in regional manufacturing activity. With the unexpected slump, the index dropped to its lowest level since hitting a negative 43.1 in May 2020. The unexpected decline by the headline index partly reflected a continued contraction in new orders, as the new orders index edged down to a negative 16.2 in November from a negative 15.9 in October. The report also showed a notable slowdown in the pace of job growth, with the number of employees index plunging to 7.1 in November from 28.5 in October. The shipments index also slipped to 7.0 in November from 8.6 in October, indicating a modest slowdown in the pace of shipment growth. The prices paid index also edged down to 35.3 in November from 36.3 in October, while the prices received index jumped to 34.6 from 30.8. The prices paid index also edged down to 35.3 in November from 36.3 in October, while the prices received index jumped to 34.6 from 30.8. While the diffusion index for future general activity climbed to a negative 7.1 in November from a negative 14.9 in October, the reading remained negative for the sixth consecutive month.Powered by Commodity Insights