Economic Buzz: Philly Fed Index Indicates Growth In August

19 Aug 2022 , 09:25 AM

After reporting contractions in Philadelphia-area manufacturing activity in the two previous months, the Federal Reserve Bank of Philadelphia released a report showing regional manufacturing activity unexpectedly returned to growth in the month of August. The Philly Fed said its diffusion index for current activity jumped to a positive 6.2 in August from a negative 12.3 in July, with a positive reading indicating growth. The rebound by the headline index was partly due to a notable acceleration in the pace of shipment growth, as the shipments index jumped to 24.8 in August from 14.8 in July. The new orders index also showed a significant rebound but remained negative, surging to a negative 5.1 in August from a negative 24.8 in July. The report also showed a faster rate of job growth, with the number of employees index rising to 24.2 in August from 19.4 in July. The prices paid index slumped to 43.6 in August from 52.2 in July, while the prices received index slid to 23.3 from 30.3. The diffusion index for future general activity climbed to a negative 10.6 in August from a negative 18.6 in July but remained negative for the third consecutive month.Powered by Commodity Insights