Philly Fed Index Surges To Eight-Month High In September
(RTTNews) - A report released by the Federal Reserve Bank of Philadelphia on Thursday said regional manufacturing activity expanded overall in the month of September.
The Philly Fed said its diffusion index for current general activity spiked to a positive 23.2 in September from a negative 0.3 in August, with a positive reading indicating growth. Economists had expected the index to rise to a positive 2.3.
With the much bigger than expected increase, the diffusion index for current general activity reached its highest level since hitting 44.3 in January.
The sharp increase by the headline index partly reflected a turnaround by new orders, as the new orders index surged to a positive 12.4 in September from a negative 1.9 in August.
The shipments index also skyrocketed to 26.1 in September from 4.5 in August, reaching its highest level since hitting 26.3 in February.
Meanwhile, the number of employees index edged down to 5.6 in September from 5.9 in August but continued to reflect overall increases in employment.
The report also said the prices index plunged to 46.8 in September from 66.8 in August, while the prices received index tumbled to 18.8 in September from 36.1 in August.
Looking ahead, the Philly Fed said the survey's future indicators suggest widespread expectations for growth over the next six months, with the diffusion index for future general activity climbing to 31.5 in September from 25.0 in August.
A separate report released by the Federal Reserve Bank of New York on Monday showed a substantial downturn by New York manufacturing activity in the month of September.
The New York Fed said its general business conditions index plunged to a negative 8.7 in September from a positive 11.9 in August, with a negative reading indicating contraction. Economists had expected the index to fall to a positive 5.0.
The index tumbled into negative territory for the first time since June after hitting its highest level since November 2024 in the previous month.
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