Philadelphia manufacturing activity weakens again, employment levels drop

(Sharecast News) - Manufacturing activity in Philadelphia has unexpectedly remained firmly in contraction this month, a closely watched indicator from the region's Federal Reserve showed on Friday. The current general activity index from Philly Fed's Manufacturing Business Outlook Survey remained unchanged at -4.0 this month, pointing to a weakening of activity for the third straight month.

The consensus estimate was for a slight improvement to -1.0.

While 25% of firms saw increases in general activity, up from 19% in May, 28% reported decreases compared with 23% previously.

The new orders index fell 5 points to 2.3, but remained positive, while the shipments index jumped 21 points to 8.3; though both readings remain below their historic averages.

Meanwhile, the employment index turned negative, falling 16.5 points to -9.8, its lowest reading since May 2020, while the future general activity index dropped 29 points to 18.3 after having jumped 40 points the previous month.