Philly Fed March business index +3.2 vs -2.3 expected

Philly Fed business index

• Prior was +5.2
• Employment: -9.6 vs -10.3 prior
• New orders: +5.4 vs -5.2 prior
• Prices paid: +3.7 vs +16.6 prior
• Prices received: +4.6 vs +6.2 prior
• Shipments: +11.4 vs +10.7 prior
• Unfilled orders: +1.0 vs -11.7 prior
• Delivery times: -16.7 vs -21.1 prior
• Inventories: +4.4 vs -2.8 prior
• Avg employee workweek: -0.2 vs +1.4 prior
• Full release

Look ahead indicators:

• Six month index: +38.6 vs +7.2 prior
• Employment: +5.8 vs +4.9 prior
• New orders: +49.9 vs +24.2 prior
• Shipments: +43.6 vs +26.7 prior
• Prices paid: +38.0 vs +41.4 prior
• Prices received: +37.1 vs +29.9 prior

The Philly Fed six-month ahead index jumped to the highest since 2021 at +38.6 vs +7.2 prior. That means half of the firms expect
an increase in activity over the next six months, exceeding
the 11 percent that expect a decrease; 34 percent expect no
change.

This was an interesting special question and highlights ongoing problems with labor supply but some optimism it will improve.

Overall the survey, which reflects the opinions of manufacturers in the region, indicates that while the pace of expansion has slightly decelerated, the sector remains on a positive trajectory. Price dynamics within the sector showed some relief, with both the prices paid and received indexes dropping to 3.7 and 4.6, respectively.

This article was written by Adam Button at www.forexlive.com.