Philly Fed Manufacturing Report Sends Mixed Messages

Manufacturing is growing in the Philadelphia area, according to a January Philadelphia Federal Reserve Bank report (link opens as PDF) released today. 

The Philly Fed publishes the results of a monthly survey asking regional (eastern Pennsylvania, southern New Jersey, and Delaware) manufacturing stakeholders whether certain components of manufacturing have experienced growth (positive number), or contraction (negative number). Investors watch regional manufacturing reports as a possible signal of larger economic upswings or downturns.

After clocking in at a revised 6.4 for December, analysts underestimated January's growth. This latest report came in at 9.4, 0.7 points above expectations.  

Source: Philadelphia Federal Reserve. 

Dissecting the index into components, January's report sends some mixed messages. While top-line numbers show faster manufacturing growth, new orders took a significant 7.8-point dip to 5.1. However, major inventory draws, consistently strong shipments, and a 5.6-point gain in employment to an even 10 all point to high confidence for well-functioning business. 

The Philly Fed report today comes on the heels of a surprisingly strong manufacturing report from its neighbor, the New York Federal Reserve.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2797927, ~/Articles/ArticleHandler.aspx, 4/2/2015 12:30:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!