Philadelphia-Area Manufacturing Activity Continues To Decline In July

(RTTNews) - Philadelphia-area manufacturing activity continued to decline in the month of July, the Federal Reserve Bank of Philadelphia revealed in a report released on Thursday.

The Philly Fed said its diffusion index for current activity crept up to a negative 13.5 in July from a negative 13.7 in June, with a negative reading indicating a contraction. Economists had expected the index to rise to a negative 10.0.

The report showed a significant downturn in shipments during the month, with the shipments index plunging to a negative 12.5 in July from a positive 9.9 in June.

The new orders index also slumped to a negative 15.9 in July from a negative 11.0 in June, remaining in negative territory for the fourteenth consecutive month.

The number of employees index also edged down to a negative 1.0 in July from a negative 0.4 in June, while the prices paid index slipped to 9.5 from 10.5.

Meanwhile, the prices received index soared to 23.0 in July from 0.1 in June, reaching its highest level since January.

Looking ahead, the Philly Fed said most future indicators improved, suggesting more widespread expectations for overall growth over the next six months.

The diffusion index for future general activity jumped to 29.1 in July from 12.7 in June, reaching its highest reading since August 2021.

"Together with the Empire State survey released earlier this week, the surveys suggest manufacturing output declined further in July," said Michael Pearce, Lead U.S. Economist at Oxford Economics.

The Federal Reserve Bank of New York released a separate report on Monday showing a pullback in the pace of growth in regional manufacturing activity in the month of July.

The New York Fed said its general business conditions index fell to 1.1 in July after surging to 6.6 in June, although a positive reading still indicates growth. Economists had expected the index to drop to zero.