Philly Fed Manufacturing Business Outlook Survey Strong in August

The Philadelphia Federal Reserve said the Manufacturing Business Outlook Survey came in at 18.9, once again stronger than the 17.0 median forecast. New orders and shipments indexes, showed noteworthy improvements.

The diffusion index increased from 2.1 to 20.4, while current shipments index increased 17 points to 29.4. Employment increases were reported by 15% of firms, while the percentage reporting decreases was just 5%. The employment index held near steady at 10.1 and average work hours rose in August.

The workweek index was positive for the 10th consecutive month.

The diffusion index for future general activity rose from 36.9 in July to 42.3 in August, its highest reading in four months. Nearly 49% of the firms expect increases in activity, while only 7% expect decreases.

The indexes for future new orders and shipments increased by 10 points and 18 points, respectively. The future employment index gained 6 points, also the highest reading in four months. While more than 38% of the manufacturers said they expect to expand employment over the next six months, only 5% expect to reduce employment.