Following an upbeat reading from the Empire survey earlier in the week, the Philly Fed’s Business Activity Index showed that manufacturing in the mid-Atlantic region continues to expand at a fairly healthy clip.
Released this morning, the index increased from 15.2 in January to 17.6 in February, the sixth straight reading above zero. A reading above zeros is expansionary.
More importantly, new orders jumped from 3.2 to 22.7, indicating that production gains should continue into the spring.
Prices, however, remain a sticking point, with prices paid (32.4) by manufacturers continuing to advance, but the relative lack of demand and plenty of excess capacity are making it difficult to pass along higher costs. Prices received edged up to 3.7.
Overall, the Philly Fed Index points to continuing gains among goods-producers, as exports rise and companies replace depleted inventories.
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