Economic Buzz: Federal Reserve Bank of Philadelphia manufacturing activity hits a five-year high.

Federal Reserve Bank of Philadelphia stated manufacturing activity in the region continued to expand overall, according to the firms responding to the August Manufacturing Business Outlook Survey. The survey’s indicator for general activity rose to a five-year high. The new orders and shipments indexes moved lower but remained elevated. The employment index rose, continuing to suggest overall gains in employment. Both price indexes declined this month but remained elevated.

The diffusion index for current general activity rose from 41.4 in July to 47.4 in August, its highest reading since April 2021. Nearly 57 percent of the firms reported increases in activity, while 10 percent reported decreases; 29 percent of the firms reported no change in activity. The current new orders and shipments indexes both declined but remained above their long-run nonrecession averages.

The employment index rose 18 points to 27.9, its highest reading since April 2022.

The bank noted that both price indexes declined this month to their lowest readings since February but remained above their long-run nonrecession averages.

Powered by Commodity Insights