WEB US July Philly Fed -70 vs 60 expected

Philadelphia-area manufacturing survey for August 2024

The Philadelphia Fed's manufacturing index for August came in at -70, well below the -60 that was expected by economists.

This is the lowest reading for the index since May 2020, and it suggests that the manufacturing sector in the Philadelphia area is contracting at a rapid pace.

The index is a measure of manufacturing activity in the Philadelphia area. It is based on a survey of manufacturers in the region.

Key Findings

• The index fell to -70 in August, down from -12.3 in July.
• This is the lowest reading for the index since May 2020.
• The index is now in negative territory, which indicates that the manufacturing sector is contracting.
• The new orders index fell to -27.9 in August, down from -4.0 in July.
• The shipments index fell to -29.6 in August, down from -3.8 in July.
• The employment index fell to -18.4 in August, down from -0.8 in July.

The Philadelphia Fed's manufacturing index is a leading indicator of manufacturing activity in the United States.

The sharp decline in the index suggests that the manufacturing sector in the United States is likely to contract in the coming months.