Philadelphia Fed Manufacturing Index Falls Less than Expected in November

Mid-Atlantic Manufacturing Firms Expect Softer Growth Under Potential Biden Administration

Philadelphia, Penn. (PPD) — The Philadelphia Federal Reserve’s Manufacturing Business Outlook Survey fell less than expected in November, but growth slowed from October. Most manufacturing firms continue to see future growth, though softer under a Biden Administration, the Federal Reserve Bank of Philadelphia reported.

Forecasts ranged from a low of 20.0 to a high of 40.0. The consensus forecast was 24.5. The headline diffusion index fell 6 points to 26.3 in November, its sixth consecutive positive reading after reaching lows in April and May (see chart).

Forty-two percent (42%) of manufacturing firms reported gains while those reporting decreases came in at 15%. The index for new orders fell 5 points to a reading of 37.9.

Nearly 49% of the firms saw increases in new orders this month, down from 55% last month. The current shipments index fell 22 points to 24.9 in November. Nearly 41% of the firms reported higher shipments juxtaposed to 57% last month.