Mid-Atlantic Manufacturing Firms Still Say the Future Looks Bright Over Next 6 Months
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.
|Indicator||Prior||Consensus Forecast||Forecast Range||Actual|
|General Business Conditions Index||16.6||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.