Following Tuesday’s release of the Empire Manufacturing Index, the a closely-watched measure of factory output in the mid-Atlantic region is providing fresh evidence that manufacturing is in the midst of a solid rebound.
The Philly Fed’s Business Activity Index increased from 4.2 in August to 14.1 in September, the best reading since June 2007. A reading of zero marks the line between contraction and expansion.
New orders, however, eased slightly, and employers reported that employment continues to decline, falling from –12.9 to –14.3.
Looking ahead, the future general activity index remained positive for the
ninth consecutive month but decreased from 56.8 in August to 47.8. This isn’t too much of a surprise and should not be viewed negatively since the index recently approached a cyclical high as viewed by the chart above.
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