Widget Image
Follow PPD Social Media
Follow Us:
People's Pundit Locals Community
Monday, January 17, 2022
HomeNewsEconomyManufacturing Business Outlook Survey for the Mid-Atlantic Region Tanks in September

Manufacturing Business Outlook Survey for the Mid-Atlantic Region Tanks in September

mid-atlantic-manufacturing-aluminium-raw-materials-reuters

Second Major Regional Manufacturing Index Falls into Contracts in September

mid-atlantic-manufacturing-aluminium-raw-materials-reuters

A worker in the mid-Atlantic manufacturing sector works with raw aluminum materials. (PHOTO: REUTERS)

The Philadelphia Federal Reserve’s regional Manufacturing Business Outlook Survey for the mid-Atlantic tanked to -6 in September from 8.3 the month prior. The Fed’s reading came in far below economists’ expectations for a drop to positive 6. The report marks the second major regional manufacturing survey released this week showing the sector contracting, as the Empire State Manufacturing Survey out Wednesday showed regional manufacturing activity contracted for a second straight month in September, remaining well below zero at -14.7.

While the general activity index fell into contraction territory, indicators for new orders, shipments, and employment remained positive. The survey’s broadest measure of manufacturing conditions–the diffusion index of current activity–fell from 8.3 in August to -6.0 in September, which is the first negative reading for the index since February 2014. Still, there are some bright spots to note.

Overall demand for manufactured goods as measured by the survey’s current new orders index continued to grow. The diffusion index climbed from 5.8 last month to 9.4, while firms reported that shipments have also increased. Thought the current shipments index stayed in positive territory, it fell 2 points to 14.8. Further, the percentage of firms reporting gains in employees (21%) was greater than the percentage reporting a decrease (11%). The current employment index increased 5 points, its highest reading in five months. Firms also reported, on balance, a modest increase in the workweek similar to August.

Special Questions (September 2015)*

1. How will your firm’s total production for the third quarter compare with that of the second quarter?
An increase of:
% of firms
Subtotals
10% or more
5.4%
45.9% of firms reporting an increase
8-10%
5.4%
6-8%
5.4%
4-6%
9.5%
2-4%
6.8%
1-2%
8.1%
Less than 1%
5.4%
No change
12.2%
A decline of: 41.9% of firms reporting a decline
Less than 1%
1.4%
1-2%
6.8%
2-4%
4.1%
4-6%
6.8%
6-8%
5.4%
8-10%
4.1%
10% or more
13.5%
The median value for all responses is “no change.”
2. For the upcoming fourth quarter, how much growth do you expect at your plant compared with the third quarter?
Significant acceleration
6.8%
40.5% of firms reporting
acceleration
Some acceleration
16.2%
Slight acceleration
17.6%
No change
20.3%
Slight deceleration
18.9%
39.2% of firms reporting
deceleration
Some deceleration
17.6%
Significant deceleration
2.7%

*Percentages may not add to 100 percent due to rounding.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial