Manufacturing activity in the Federal Reserve Bank of Philadelphia’s region “continued to be depressed” in January, although the general business conditions index increased to negative 24.3 in January from negative 36.1 in December, this month’s Report on Business indicates.
Economists surveyed by IFR Markets predicted a reading of negative 35.0.
“All of the survey’s broad indicators for current activity remained negative, although some rose from the extremely low levels they had reached during the past few months,” the Fed said. “Employment losses, however, were reported to be more substantial. Firms continued to report declines in input prices and prices for their own manufactured goods. Most of the survey’s indicators of future activity improved, suggesting that the region’s manufacturing executives expect declines to bottom out over the next six months.”
