(Reuters) – The Philadelphia Federal Reserve’s manufacturing index fell sharply to -24.3 in February, unexpectedly worse than -8.9 in the previous month. Input cost growth accelerated for the first time in 10 months, while receipt price growth slowed significantly, signaling margins under pressure.
Economists polled by Reuters expected a negative 7.4.
The price paid index by manufacturers rose to 26.5 from 24.5 the previous month and turned positive for the first time since April last year. Meanwhile, receipt prices plunged 50% from the previous month to 14.9, the lowest level since February 2021.
In addition, companies expect their prices to rise by 4.5% over the next 12 months, down from 4.8% in November. In the past year, interest rates have been raised by 7.0%.
New orders, shipments, delivery times, and headcount indicators all fell.