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Thursday, September 19, 2019
HomeNewsEconomyPhiladelphia Fed Manufacturing Index Falls in June, Lowest Since February

Philadelphia Fed Manufacturing Index Falls in June, Lowest Since February

A manufacturing assembly line at the Heinz factory in Pittsburgh, Pennsylvania. (Photo: Courtesy of Heinz)

Mid-Atlantic Manufacturing Firms Still Say the Future Looks Bright Over Next 6 Months

A manufacturing assembly line at the Heinz factory in Pittsburgh, Pennsylvania. (Photo: Courtesy of Heinz)
A manufacturing assembly line at the Heinz factory in Pittsburgh, Pennsylvania. (Photo: Courtesy of Heinz)

The Philadelphia Fed’s manufacturing index fell to the lowest level since last February, well below the consensus forecast. The Manufacturing Business Outlook Survey fell to 0.3 in June from 16.6 in May.


IndicatorPriorConsensus ForecastForecast RangeActual
General Business Conditions Index16.6 11.0 2.0  to 15.1 0.3 

Still, the firms continued to report increases in employment. Nearly 25% of reported increases in employment, while just 9% reported decreases in June. The employment diffusion index fell3 points to 15.4, while the average workweek index fell 4 points this month, to 7.3.

The diffusion index for future general activity increased 2 points from its May reading but remains well below readings. Nearly 40% expect increases in activity over the next six months, while just 19% expect declines.

The future shipments and new orders indexes both improved. The future shipments index rose 13 points, while the future new orders index gained 10 points.

The firms remained optimistic overall about hiring over the next six months. The future employment index was virtually unchanged at 27.0, with over 35% expecting higher employment over the duration.

The future capital spending index improved 5 points to a reading of 28.0, near its average for this year.

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.

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