Economic Update: Philadelphia Fed Index
The Philadelphia Fed Business Outlook Index was reported at -7.9 in August, which was once again below the consensus for a reading of -4.9 but represents a modest uptick from last month’s reading of -12.9 (June: -16.6, May: -5.8, April: +8.5). Note that this was the fourth consecutive negative monthly reading.
According to the report, “Firms responding to the August Business Outlook Survey continued to report weakness in overall business conditions. The survey’s indicators for general activity and new orders remained negative for the fourth consecutive month, but both increased slightly from July. Firms also reported slight overall declines in employment and shorter work hours this month. Indicators of expected activity over the next six months remained positive but moderated for the second consecutive month.”
Employment index: −8.6 (its third negative reading in four months)
Prices Paid (measure of inflation): 11.2 vs 3.7
New Orders: -5.5 vs. -6.9
According to Investopedia, the Philly Fed Index is a regional federal-reserve-bank index measuring changes in business growth. The index is constructed from a survey of participants who voluntarily answer questions regarding the direction of change in their overall business activities. The survey is a measure of regional manufacturing growth. When the index is above 0 it indicates factory-sector growth, and when below 0 indicates contraction.
Other stories on the US Economy to review:
Remember, you are in control your email alerts! You can receive alerts for more than 25 free research report alerts including: The “10.0” Report, The Insiders Report, ETF Leaders Report, and The Focus List.