{"id":128121,"date":"2022-06-16T23:23:19","date_gmt":"2022-06-16T23:23:19","guid":{"rendered":"https:\/\/myfintale.com\/?p=128121"},"modified":"2022-06-16T23:23:19","modified_gmt":"2022-06-16T23:23:19","slug":"philly-fed-index-indicates-first-contraction-since-may-2020","status":"publish","type":"post","link":"https:\/\/myfintale.com\/economy\/philly-fed-index-indicates-first-contraction-since-may-2020\/","title":{"rendered":"Philly Fed Index Indicates First Contraction Since May 2020"},"content":{"rendered":"
Manufacturing activity in the Philadelphia region saw a modest contraction in the month of June, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.<\/p>\n
The Philly Fed said its current general activity index dropped to a negative 3.3 in June from a positive 2.6 in May. The negative reading indicates the first contraction in regional manufacturing activity since May of 2020.<\/p>\n
The decrease came as a surprise to economists, who had expected the current general activity index to rise to a positive 5.5.<\/p>\n
The unexpected decline by the headline index came as the new orders index plummeted to a negative 12.4 in June from a positive 22.1 in May.<\/p>\n
The shipments index also plunged to 10.8 in June from 35.3 in May, indicating a substantial slowdown in the pace of growth.<\/p>\n
On the other hand, the number of employees index rose to 28.1 in June from 25.5 in May, suggesting a continued increase in employment.<\/p>\n
The report also show decreases by both the price paid and prices received indexes, although they remained elevated.<\/p>\n
Looking ahead, the Philly Fed said expectations for growth over the next six months deteriorated, with the diffusion index for future general activity slumping to a negative 6.8 in June from a positive 2.5 in May. The index turned negative for the first time since December 2008.<\/p>\n
“Slower manufacturing growth shouldn’t come as a surprise as services spending takes the baton from goods, but the pace at which some of the recent data point to a slowdown is concerning,” said Oren Klachkin, Lead U.S. Economist at Oxford Economics.<\/p>\n
“Overall, we believe the fundamental backdrop will support additional manufacturing gains in the month ahead, though there’s a non-negligible risk that growth could stumble,” he added. “The window for avoiding a recession is narrower today, but a downturn isn’t unavoidable.” <\/p>\n
Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Manufacturing activity in the Philadelphia region saw a modest contraction in the month of June, according to a report released by the Federal Reserve Bank […]<\/a><\/p>\n<\/div>","protected":false},"author":3,"featured_media":128120,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"yoast_head":"\n