Philadelphia Fed index slips to ‑10.2 in December

(Sharecast News) - Manufacturing activity in the Philadelphia region weakened further in December, with the headline index slipping deeper into negative territory and marking the third straight month of contraction, highlighting ongoing softness across the sector. The Philadelphia Federal Reserve's manufacturing index dropped 8.5 points to ‑10.2 in December, down from ‑1.7 in November and below consensus expectations for a more modest decline to ‑3.1.

Despite the headline decline, new orders rebounded 14 points to 5, reversing November's contraction, while shipments rose 12 points to 3.2. Employment also remained resilient, with the index climbing to 12.9, its highest level since May.

On the price front, the prices paid index fell 13 points to 43.6, its lowest reading in six months, while prices received rose 7 points to 24.3, largely offsetting November's decline.

Looking ahead, the future activity index slipped 8 points to 41.6, its first drop since June, with future new orders and shipments also easing.





Reporting by Iain Gilbert at Sharecast.com