Connect With PPD
Follow Us:
Sections: Economy

Manufacturing Business Outlook Survey Shows Slowdown In Mid-Atlantic

(Photo: Reuters)

U.S. factory activity in the mid-Atlantic region slowed in January, according to firms responding to this month’s Manufacturing Business Outlook Survey.

The Philadelphia Federal Reserve Bank said its business activity index fell to 6.3, which is the lowest since February 2014, plummeting from 24.3 in December. That widely missed economists’ expectations for 19.9, according to a Reuters poll.

Any survey reading above zero indicates expansion in the region’s manufacturing sector, which covers factories in eastern Pennsylvania, southern New Jersey and Delaware.

Along with The New York Federal Reserve’s Empire State Manufacturing Survey, the index are seen as one of the first monthly indicators of the health of U.S. manufacturing leading up to the national report by the Institute for Supply Management.

The predominant New York manufacturing index emerged from contraction territory in January, clocking in at 9.95 from -1.23 the month prior. It was the first contraction in regional manufacturing activity in two years.

The survey’s broadest measure of manufacturing conditions — the diffusion index of current activity — decreased 18 points from a revised 24.3 in December to 6.3 (see Chart 1). Demand for manufactured goods decreased 5 points, down from a revised reading of 13.6 last month to 8.5. Further, shipments also fell, with its index bottoming out 22 points to -6.9, its first negative reading since February 2014. Firms reported shorter delivery times and a decrease in unfilled orders this month, on balance.

As with the Empire State Manufacturing Index, signs of a weakening labor market in manufacturing were present.

“Firms’ responses suggest weaker labor market conditions in January. The percentage of firms reporting a decrease in employees (15 percent) exceeded the percentage reporting an increase (13 percent) for the first time in 19 months,” the report stated. “The current employment index fell 10 points, from 8.4 to -2.0. Firms also reported reductions in the workweek: The percentage of firms reporting a shorter workweek (23 percent) was greater than the percentage reporting a longer workweek (16 percent).”

READ FULL STORY

SubscribeSign In
PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Share
Published by
PPD Business Staff

Recent Posts

Media’s Worst Russian Collusion Sins May Soon Be Repeated

The most damning journalistic sin committed by the media during the era of Russia collusion…

1 year ago

Study: Mask-Mandates and Use Not Associated With Lower Covid-19 Case Growth

The first ecological study finds mask mandates were not effective at slowing the spread of…

3 years ago

Barnes and Baris on Big Tech’s Arbitrary Social Media Bans

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…

4 years ago

Barnes and Baris on Why America First Stands With Israel

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…

4 years ago

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…

4 years ago

Study: Infection, Vaccination Protects Against Covid-19 Variants

Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…

4 years ago

This website uses cookies.