The index of the local branch of the Fed lost 7 points in August and stood at +17.2, against +24.1 in July. Analysts were forecasting a pullback to +21.
–
Manufacturing activity in the Philadelphia region (northeastern United States) continued to grow in August, but at a slower pace than in June and July, according to the index of the local branch of the Central Bank US (Fed) released Thursday.
This activity indicator lost 7 points in August and stood at +17.2, against +24.1 in July. This is a bigger drop than expected by analysts, who saw the index settle at +21.
However, more companies are seeing their activity grow (28%) than decline (11%).
In detail, the increase in new orders is less significant than the previous month, and the index measuring it fell from +23 to +19.
Likewise, the sector continues to hire, for the second month in a row, but at a slower pace, and the index goes from +11 to +9.
This decline in the index “shows that manufacturing activity (…) is weaker” than during the initial restart of activity, stress analysts at Oxford Economics.
They note, however, that “manufacturers remain optimistic about the outlook and continue to expect to hire more workers in the short term”.
This leading indicator measures the perception that manufacturers in the third region of the Federal Reserve (covering eastern Pennsylvania, Delaware and southern New Jersey) have of the economy through the activity of their company.
The survey was conducted August 10-17.
–
