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Philadelphia Fed Archives - Shopfloor

Philly Fed: Manufacturing Continues to Expand at a Robust Pace

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The Federal Reserve Bank of Philadelphia said that manufacturing activity continued to expand at a robust pace in May. The composite index of general business activity increased from 22.0 in April to 38.8 in May. February’s 43.3 figure was the highest reading since November 1983, and this latest figure was the best since then. The headline number in May was boosted by strong growth in shipments (up from 23.4 to 39.1), with the percentage of respondents suggesting that their shipments had increased rising from 38.5 percent in April to 48.4 percent in May. In addition, there were strong gains seen for new orders (down from 27.4 to 25.4), employment (down from 19.9 to 17.3) and the average workweek (up from 18.9 to 21.7), even with some easing in a couple of these measures. The rate of expansion for the average employee workweek was at a level not seen since October 1987. Read More

Philly Fed: Manufacturing Continues to Expand Strongly Despite Some Easing in April

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The Federal Reserve Bank of Philadelphia reported that manufacturing activity remained strong in April, even as headline growth has continued to pull back from February’s pace, which was the best reading since November 1983. The composite index of general business activity has decreased from 43.3 in February, to 32.8 in March, to 22.0 in April. Despite the easing in the composite and many of the underlying measures, the data continued to signal a healthy expansion in the district, including new orders (down from 38.6 to 27.4), shipments (down from 32.9 to 23.4), employment (up from 17.5 to 19.9) and the average workweek (up from 18.5 to 18.9). The rate of hiring growth was the fastest since May 2011. On the downside, there have been rising pricing pressures of late (down from 40.7 to 33.7), even as the index for prices paid decelerated somewhat from its highest level in nearly six years. Read More

Philly Fed: Growth in Manufacturing Activity Remained Strong in March

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The Federal Reserve Bank of Philadelphia said that manufacturing activity remained strong in March, even as headline growth pulled back from its strongest pace since November 1983. The composite index of general business activity decreased from 43.3 in February to 32.8 in March, which continued to be quite elevated. Despite the easing in the composite measure, many of the underlying data points expanded at a faster rate in March. This included new orders (up from 38.0 to 38.6), shipments (up from 28.6 to 32.9), employment (up from 11.1 to 17.5) and the average workweek (up from 13.6 to 18.5). Indeed, 53.4 percent of respondents said that sales were higher in March than in February, which should bode well for activity down the line. On the downside, faster growth appears to be leading to increased pricing pressures (up from 29.9 to 40.7), its highest level since May 2011. Read More

Philly Fed: Manufacturing Activity Accelerated in February at Strongest Rate Since November 1983

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The Federal Reserve Bank of Philadelphia said that manufacturing activity expanded in February at its strongest rate since November 1983. The composite index of general business activity rose from 23.6 in January to 43.3 in February, with 48.2 percent of survey respondents suggesting that conditions had improved this month. Just 4.8 percent said that conditions had worsened. Other measures were also uplifting, including new orders (up from 26.0 to 38.0), shipments (up from 20.5 to 28.6) and the average employee workweek (up from 6.8 to 13.6). Growth in hiring (down from 12.8 to 11.1) continued to expand modestly despite some easing in the current release. Read More

Philly Fed: Manufacturing Activity Continued to Accelerate in January

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The Federal Reserve Bank of Philadelphia said that manufacturing activity expanded at its fastest pace in 26 months, continuing to accelerate as we begin 2017. The composite index of general business activity rose from 19.7 in December to 23.6 in January, its highest level since November 2014. In addition, sentiment has now expanded for six consecutive months, improving from broad-based weaknesses in late 2015 and early 2016. Growth in new orders (up from 14.9 to 26.0) also rose strongly, with 41.4 percent of respondents noting increased sales for the month, up from 31.6 percent in the prior release. At the same time, shipments (down from 21.7 to 20.5) and hiring (up from 3.6 to 12.8) were also encouraging, albeit with a slight easing in the former. Read More

Philly Fed: Post-Election Manufacturing Sentiment at 25-Month High

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The Federal Reserve Bank of Philadelphia reported that manufacturing activity expanded at its fastest pace in 25 months, expressing post-election optimism in its latest survey. The composite index of general business activity soared from 7.6 in November to 21.5 in December, its highest level since November 2014. In addition, sentiment has now expanded for five consecutive months, improving from weaker data earlier in the year. With that said, the underlying data were mixed, but still encouraging. Growth in new orders eased somewhat (down from 18.6 to 13.9), whereas shipments accelerated (up from 19.5 to 22.0), with both variables expressing relatively strong expansions.   Read More

Philly Fed: Manufacturing Activity Expanded for the Fifth Time in the Past Six Months

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The Federal Reserve Bank of Philadelphia said that manufacturing activity expanded for the fifth time in the past six months. The composite index of general business activity declined from 9.7 in October to 7.6 in November. This marks notable improvement for manufacturers after weaknesses last year and in the spring months. Despite the easing in this month’s headline number, both new orders (up from 16.3 to 18.6) and shipments (up from 15.3 to 19.5) were higher in November. The percentage of respondents saying that new orders were lower for the month declined from 24.1 percent in October to 17.7 percent in November, with the largest shift among those saying that there was no change in sales, up from 33.7 percent to 45.9 percent. Read More

Philly Fed: Manufacturing Activity Improved Despite Another Contraction in the Composite Index

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The Federal Reserve Bank of Philadelphia said that manufacturing sentiment in July contracted for the third time in the past four months (or the ninth time in the past 11 months). The composite index of general business activity declined from 4.7 in June to -2.7 in July. It is likely that post-Brexit worries negatively impacted assessments about the broader economy. Despite a decrease in the headline number, many of the underlying data points improved for the month. For instance, both new orders (up from -3.0 to 11.8) and shipments (up from -2.1 to 6.0) returned to expansion territory in July, which was encouraging. Indeed, the percentage of respondents suggesting that orders had increased for the month rose from 20.6 percent in June to 27.6 percent in July, with those noting declining sales dropping from 23.6 percent to 15.8 percent. Read More

Philly Fed: Manufacturing Activity Expanded Somewhat in June, but Growth Remained a Challenge

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The Federal Reserve Bank of Philadelphia said that manufacturing activity rebounded in June after contracting in both April and May. The composite index of general business activity rose from -1.8 in May to 4.7 in June. It was only the second time in the past ten months that activity has expanded, highlighting the challenges for the sector seen over much of the past year. The better headline number might have been a more encouraging sign, mirroring data from the New York Fed yesterday, if it were not for the fact that many other key measures in the Philly Fed report were lower. For instance, new orders (down from -1.9 to -3.0), shipments (down from -0.5 to -2.1) and employment (down from -3.3 to -10.9) pulled further into negative territory.  Moreover, the average employee workweek (up from -15.1 to -13.1) continued to shrink at a fairly fast clip, despite a slight easing in the pace of decline in June. Read More

Philly Fed: Manufacturing Activity Declined Again in April after Rebounding in March

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The Federal Reserve Bank of Philadelphia said that manufacturing activity declined again after rebounding in March. The composite index of general business activity fell from 12.4 in March to -1.6 in April. As such, the headline number has now been negative in seven of the past eight months, suggesting that manufacturers continue to struggle from recent economic weaknesses. In April, that was most evident in the new orders (down from 15.7 to zero) and shipments (down from 22.1 to -10.8) data, with demand stagnating and shipments plunging. Indeed, the percentage of respondents saying that their orders had increased in the month decreased from 36.7 percent in March to 22.9 percent in April, illustrating the shift in this month’s report. Read More