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Philly Fed manufacturing index jumps to +41.4 in July
The general activity and new orders indicators both rose to nearly five year highs, while the employment index stayed positive for a second straight month.
Forexlive reports the Federal Reserve Bank of Philadelphia’s July Manufacturing Survey, also known as the Philly Fed Index, rose to +41.4, versus +13.0 expected, after a prior reading of +10.3.
The report said manufacturing activity continued to expand overall, with the survey’s general activity and new orders indicators increasing this month to nearly five year highs. It also noted that the shipments index rose, and the employment index remained positive for a second consecutive month, pointing to overall increases in hiring.
Forexlive added that the prices paid index changed little, while the prices received index increased. Firms continued to expect overall growth over the next six months, though most forward looking indicators moved down from elevated levels.
The Philly Fed Index is published by the Fed’s Philadelphia district, covering eastern Pennsylvania, southern New Jersey, and Delaware. It is watched as an early monthly read on manufacturing health, with readings above zero indicating expansion and readings below zero signaling contraction, and it is often treated as a leading indicator for the national ISM Manufacturing Index.