Economy

Manufacturing Business Outlook Survey: Little Growth in Mid-Atlantic Region

A worker in the mid-Atlantic manufacturing sector works with raw aluminum materials. (PHOTO: REUTERS)

The Manufacturing Business Outlook Survey, the Philadelphia Federal Reserve’s gauge of manufacturing activity in the mid-Atlantic region, rose in June. The survey increased to a positive 4.7 in June, up from negative 1.4 the month prior. The median economist forecast was for a flat reading of zero.

A reading above zero indicates expansion.

While the Manufacturing Business Outlook Survey was generally positive in June, other broad indicators continued to reflect general weakness in business conditions. First, the survey’s subindex for the labor market indicate continued weakness in employment conditions.

The employment index was negative for the sixth consecutive month, declining from –3.3 in May to –10.9 in June. Even though almost 72% of the firms reported no change in employment this month, the percentage reporting decreases (20%) far exceeded the percentage reporting increases (9%). The average workweek index edged up slightly but remained negative, at –13.1.

Special Questions (June 2016)

1. How will your firm’s total production for the second quarter compare with that of the first quarter?*
		Change attributable to:
	% of firms	Seasonal factors	Business conditions	Other
Increase	44.4%	23.6%	16.7%	2.8%
No change	13.9%
Decrease	40.3%	9.7%	29.2%	1.4%

2. For the upcoming **third quarter**, how much growth do you expect at your plant compared with the second quarter?
Significant acceleration	1.4%	% of firms reporting acceleration: 44.9%
Some acceleration	26.1%
Slight acceleration	17.4%
No change	29.0%
Slight deceleration	13.0%	% of firms reporting deceleration: 26.1%
Some deceleration	11.6%
Significant deceleration	1.4%

3. If you expect to increase production in the third quarter, how will this be accomplished?
Hiring additional workers	22.6%
Increasing work hours of current staff, without hiring additional workers	29.0%
Increasing productivity of current staff, without hiring additional workers	41.9%
Other	6.5%
*Subtotals may not sum to totals because of incomplete answers.

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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.

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View Comments

Mickey Shea McLaughlin says:

June 18, 2016 at 8:32 PM

The Central banks could throw the kitchen sink at trying to stimulate the global economy and would
not do much.