Philadelphia Fed Manufacturing Gauge Drops to 20.9 but Stays Positive

The Philadelphia Fed’s regional manufacturing activity index fell to 20.9 in October from 37.8 in September. The reading remained above zero, indicating that more surveyed firms reported growth than contraction, even as several measures of current activity weakened.

The new orders index dropped 25 points to 4.3, and the shipments index fell 12 points to 15.3. The employment index slipped three points to 9.1, a positive reading that indicated employment continued to increase overall.

Price measures moved in opposite directions. The prices paid index eased five points to 43.2, while the prices received index rose nine points to 40.1.

Firms were less upbeat about the next six months than in September, with the future activity index down 20 points to 33.0. More than 51% expected activity to increase, while 18% anticipated a decline. Survey responses were collected from Oct. 5 to Oct. 12.