The latest survey released by the Philadelphia Federal Reserve suggests that the region’s manufacturing sector is still experiencing weakness.
The Business Outlook Survey, which looks at manufacturing in the mid-Atlantic region, fell from –2.2 in June to –7.5 in July and interrupted a four-month string of increases. A reading of zero suggests economic output is neither expanding nor contracting. Economists had been looking for a reading of about –5.0.
New orders edged up but remained just below zero, and layoffs are still a serious concern.
Firms reported less widespread declines in input prices again this month. The prices paid index, although still negative at ‐3.5, increased nearly 10 points and has risen 28 points over the last three months. Not too much of a surprise because commodity prices are off the lows.
Prices received, however, dropped 5 points to –21.5.
The drop in the headline figure was a little larger than had been expected but isn’t that worrisome in light of prior gains.
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