Philly Fed Index Jumps Back Into Positive Territory In June

(RTTNews) - Philadelphia-area manufacturing activity expanded overall in the month of June, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.

The Philly Fed said its diffusion index for current general activity shot up to a positive 10.3 in June from a negative 0.4 in May, with a positive reading indicating growth. Economists had expected the index to jump to a positive 10.0.

The rebound by the headline index came amid a substantial turnaround by new orders, as the new orders index soared to a positive 27.3 in June from a negative 1.7 in May.

The number of employes index also spiked to a positive 7.9 in June from a negative 2.8 in May, while shipments index surged to 14.9 in June from 4.9 in May.

On the inflation front, the Philly Fed said firms continued to report overall increases in prices on balance.

While the prices paid index climbed to 53.2 in June from 47.9 in May, the prices received index slid to 20.3 in June from 26.3 in May, hitting its lowest level since February.

Looking ahead, the diffusion index for future general activity fell to 50.2 in June from 53.2 in May, but the Philly Fed said firms continue to expect overall growth over the next six months.

The Federal Reserve Bank of New York released a separate report on Monday showing New York manufacturing activity increased modestly in June after posting strong growth last month.

The New York Fed said its general business conditions index plunged to 5.7 in June after jumping to 19.6 in May, although a positive reading still indicates growth. Economists had expected the index to fall to 12.5.

Looking ahead, the New York Fed said firms maintained a fairly optimistic outlook for business activity, but the index for future conditions fell to 30.1 in June from 33.5 in May.