Philly Fed Index Shows Slower Growth Than Expected in Area Manufacturing

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Image via Kreischer Miller.

According to a report by the Federal Reserve Bank of Philadelphia, growth in area manufacturing slowed significantly more than expected in November, according to a report from RTT News.

The Philadelphia Fed diffusion index for current general activity dropped to 12.9 in November from 22.2 in September. It was expected that the index would dip to 20.0. But even the lower figure shows there is still growth in regional manufacturing.

The steep drop was in part caused by a slowdown in the growth of new orders. The new orders index dropped to 9.1 in November from 19.3 in October. Also, the shipments index went down to 21.6 in November from 24.5 in October, while the number of employees index fell from 19.5 to 16.3.

When it comes to inflation, the prices received index slumped to 21.9 in November from 24.1 in October. However, the prices paid index rose from 38.2 to 39.3.

The Philadelphia Fed said that area firms remain mostly optimistic about future growth. Even after the diffusion index for future general activity fell from 33.8 in October to 27.2 in November.

Read more about the slowdown of growth in area manufacturing at RTT News here.

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