Economic Buzz: US Philly Fed Index Improves But Remains Negative In October

21 Oct 2022 , 09:14 AM

The Federal Reserve Bank of Philadelphia released a report on Thursday showing a continued contraction in regional manufacturing activity in the month of October. The Philly Fed said its diffusion index for current activity inched up to a negative 8.7 in October from a negative 9.9 in September, but a negative reading still indicates a contraction. The uptick by the headline index partly reflected a slightly slower pace of contraction in new orders, as the new orders crept up to a negative 15.9 in October from a negative 17.6 in September. The number of employees also jumped to 28.5 in October from 12.0 in September, indicating a notable faster rate of job growth. Meanwhile, the shipments index edged down to 8.6 in October from 8.8 in September, dipping to its lowest reading since May 2020. The report also showed the prices paid index rose to 36.3 in October from 29.8 in September, while the prices received index crept up 30.8 from 29.6. The diffusion index for future general activity slumped to a negative 14.9 in October from a negative 3.9 in September, remaining negative for the fifth straight month.Powered by Commodity Insights