Philly Fed Index Indicates Modestly Slower Contraction In November
The Federal Reserve Bank of Philadelphia released a report on Thursday showing a modest slowdown in the pace of contraction in regional manufacturing activity in the month of November.
The Philly Fed said its diffusion index for current general activity rose to a negative 5.9 in November from a negative 9.0 in October, although a negative reading still indicates contraction. Economists had expected the index to come in unchanged.
The increase by the headline index came despite a significant downturn in shipments, with the shipments index plunging to a negative 17.9 in November from a positive 10.8 in October.
The new orders index also dipped to 1.3 in November from 4.4 in October, while the number of employees index fell to 0.8 in November from 4.0 in October.
On the inflation front, the prices paid index slid to 14.8 in November from 23.1 in October, but the prices received index inched up to 14.8 in November from 14.6 in October.
The Philly Fed also said future indicators suggest firms’ expectations for growth over the next six months remain subdued.
The diffusion index for future general activity tumbled a negative 2.1 in November from a positive 9.2 in October, turning negative for the first time since May.
On Wednesday, the Federal Reserve Bank of New York released a separate report unexpectedly showing a significant turnaround in regional manufacturing activity in the month of November.
The New York Fed said its general business conditions index surged to a positive 9.1 in November from a negative 4.6 in October, with a positive reading indicating growth. Economists had expected the index to rise to a negative 2.8.
Meanwhile, the New York Fed said firms became much less sanguine about the outlook, with the index for future business conditions plunging to a negative 0.9 in November from a positive 23.1 in October.
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