Philly Fed Manufacturing Survey Signals 10th Straight Month Of Contraction

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by Tyler Durden
Thursday, Jul 20, 2023 - 12:44 PM

The Philly Fed Manufacturing Business Outlook Survey showed that activity in the region continued to decline overall in June.

The survey’s indicators for general activity and new orders remained negative. However, the index for shipments rose and turned positive.

Current general activity declined from a reading of -10.4 last month to -13.7 this month, its 10th consecutive negative reading. One-third of the firms reported decreases, exceeding the 20 percent reporting increases...

Source: Bloomberg

However, as the chart above shows, there is hope - the index for future general activity jumped from a reading of -10.3 in May to 12.7 in June, the index’s first positive reading in four months and highest reading since March 2022

New Orders contracted for the 14th straight month., but expectations for future new orders exploded higher...

Finally, on the positive side - for The Fed - the price indexes remained below long-run averages.