ZCZC
BCN-30
US-ECONOMY-MANUFACTURING
U.S. regional manufacturing improves in July: survey
HOUSTON, July 19, 2019 (BSS/Xinhua) – U.S. Federal Reserve Bank of
Philadelphia on Thursday reported improved regional manufacturing conditions
in July.
The diffusion index for current general activity more than recovered from
its decline last month, increasing from 0.3 in June to 21.8 this month. The
indexes for current shipments and new orders also improved this month. The
current new orders index increased 11 points, while the shipments index
increased 8 points, according to its July Manufacturing Business Outlook
Survey.
The survey showed that the firms reported increases in manufacturing
employment and longer workweeks this month. The current employment index
increased 15 points to 30.0, its highest reading since October 2017. The
average workweek index also increased 16 points, hitting its highest reading
in 14 months.
The prices paid and prices received indexes both increased this month but
remained well below their readings over the past few years. The current
prices received index, reflecting the manufacturers’ own prices, increased 9
points to a reading of 9.5. The prices paid diffusion index increased 3
points to 16.1.
The diffusion index for future general activity increased 17 points to its
highest reading since May 2018. Nearly 53 percent of the firms expect
increases in activity over the next six months, while 15 percent expect
declines. The future new orders index increased 14 points, while the future
shipments index was unchanged from an elevated reading.
The firms remained optimistic overall about hiring over the next six
months. Although the future employment index decreased 2 points, 34 percent
of the firms expect higher employment over the next six months. The future
capital spending index improved 9 points this month to a reading of 36.9, its
highest reading in 17 months.
The Manufacturing Business Outlook Survey is a monthly survey of
manufacturers in the Third Federal Reserve District covering eastern
Pennsylvania, southern New Jersey, and Delaware.
Participants indicate the direction of change in overall business activity
and in the various measures of activity at their plants.
Federal Reserve Bank of Philadelphia is one of the 12 regional Federal
Reserve Banks that, together with the Board of Governors based in Washington,
D.C., make up the Federal Reserve System.
BSS/XINHUA/HR/1455