{"id":130482,"date":"2022-11-18T11:37:13","date_gmt":"2022-11-18T11:37:13","guid":{"rendered":"https:\/\/myfintale.com\/?p=130482"},"modified":"2022-11-18T11:37:13","modified_gmt":"2022-11-18T11:37:13","slug":"philly-fed-index-slumps-to-lowest-level-since-may-2020","status":"publish","type":"post","link":"https:\/\/myfintale.com\/economy\/philly-fed-index-slumps-to-lowest-level-since-may-2020\/","title":{"rendered":"Philly Fed Index Slumps To Lowest Level Since May 2020"},"content":{"rendered":"
A report released by the Federal Reserve Bank of Philadelphia on Thursday showed regional manufacturing activity unexpectedly contracted at a faster rate in the month of November.<\/p>\n
The Philly Fed said its diffusion index for current activity tumbled to a negative 19.4 in November from a negative 8.7 in October, with a negative reading indicating a contraction in regional manufacturing activity.<\/p>\n
The decrease by the Philly Fed index came as a surprise to economists, who had expected the index to inch up to a negative 6.2.<\/p>\n
With the unexpected slump, the index dropped to its lowest level since hitting a negative 43.1 in May 2020.<\/p>\n
“Manufacturing conditions in the U.S. are deteriorating because of the weakening in the global economy<\/span> and appreciation in the U.S. dollar,” said Gurleen Chadha, U.S. Economist at Oxford Economics.<\/p>\n The unexpected decline by the headline index partly reflected a continued contraction in new orders, as the new orders index edged down to a negative 16.2 in November from a negative 15.9 in October.<\/p>\n The report also showed a notable slowdown in the pace of job growth, with the number of employees index plunging to 7.1 in November from 28.5 in October.<\/p>\n The shipments index also slipped to 7.0 in November from 8.6 in October, indicating a modest slowdown in the pace of shipment growth.<\/p>\n The prices paid index also edged down to 35.3 in November from 36.3 in October, while the prices received index jumped to 34.6 from 30.8.<\/p>\n Looking ahead, the Philly Fed said the survey’s future indexes rose slightly but continued to suggest firms expect overall declines in activity and new orders six months from now.<\/p>\n While the diffusion index for future general activity climbed to a negative 7.1 in November from a negative 14.9 in October, the reading remained negative for the sixth consecutive month.<\/p>\n “Slower manufacturing growth shouldn’t come as a surprise as a dwindling pipeline, downbeat sentiment, rising interest rates, and lingering supply chain challenges will weigh on regional, and national, factory activity,” said Chadha.<\/p>\n Meanwhile, the New York Fed released a separate report on Tuesday showing a notable rebound in regional manufacturing activity in the month of November.<\/p>\n The New York Fed said its general business<\/span> conditions index surged to a positive 4.5 in November from a negative 9.1 in October. Economists had expected the index to jump to a positive 5.0. <\/p>\n Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A report released by the Federal Reserve Bank of Philadelphia on Thursday showed regional manufacturing activity unexpectedly contracted at a faster rate in the month […]<\/a><\/p>\n<\/div>","protected":false},"author":3,"featured_media":130481,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"yoast_head":"\n