The Philadelphia Fed Manufacturing Index in the United States increased by one point but remained negative at -8.7 in October 2022, falling short of market estimates of -5. The general activity and new orders indicators were negative, while the shipping index stayed unchanged at a low but positive value. This report shows that the Philadelphia Fed Manufacturing Index is in negative territory for the second month running.
On balance, enterprises continued to report increasing employment, and both price indices show overall price increases. The survey’s projected general activity indicators indicate that questioned enterprises anticipate overall reductions during the next six months.
Philadelphia Fed Manufacturing Index: Important Information
In contrast to the national ISM manufacturing sector index, which is a composite based on components, the headline index is based on a single stand-alone inquiry on business conditions.
The new orders barometer rose two points to minus 15.9. The shipments index remained steady at 8.6, its lowest level since May 2020. The six-month business outlook indicator decreased substantially to negative 14.9 from negative 3.9.
Philadelphia Fed Manufacturing Index: The Big Picture
According to Richard Moody, chief economist at Regions Financial Corp., manufacturing is suffering with decreased orders, shrinking order backlogs, and right-sizing client inventories.
In October, the Empire State Index, a comparable poll from New York, plunged 7.6 points to minus 9.1.
These two regional surveys provide economists with an early sense of trends ahead of the publication of the national ISM manufacturing activity index early next month. In September, the ISM manufacturing index dropped to 50.9, its lowest level since the spring of 2020.
The Market Response
Following the release of the Philadelphia Fed Manufacturing Index, the US Dollar Index is presently flirting with the daily bottom. The safe-haven greenback is under pressure as global risk sentiment improves, as seen by a bullish tone in financial markets.
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Author Jowi Kwasu