Manufacturers report continued expanding in July, and the Federal Reserve Bank of Philadelphia Report on Business respondents reported “widespread increases for purchased inputs.”
The region's manufacturing sector expanded in July, at a faster pace than in June, as the general business conditions index increased to 25.7 from 19.9.
Economists surveyed by IFR Markets predicted a reading of 22.0 for the index.
The prices paid index was 62.9, up from 51.8 last month, new orders index soared to 31.4 from 17.9, shipments slid to 24.7 from 28.7, the unfilled orders index gained to positive 11.0 from negative 2.7, the delivery times index rose to 11.0 from 9.6, inventories grew to 14.4 from 10.2, prices received climbed to 36.3 from 33.2, the number of employees index fell to 16.8 from 30.4, and the average employee workweek dropped to 13.7 from 24.2.
“Price increases for purchased inputs were reported by 63% of the manufacturers this month, up from 54% last month,” according to the report. “The index has now risen 30 points since January. The current prices received index, reflecting the manufacturers’ own prices, increased 3 points. Over 36% of the firms reported higher prices for their manufactured goods this month.”
The six months from now general business conditions index fell to 29.0 from 34.8 in last month’s survey, the prices paid index was at 59.7, off from 62.6 in the prior survey, and the prices received index slipped to 50.6 from 56.6. The capital expenditures index rose to 36.5 from 36.5 last month. The number of employees index declined to 31.4 from 34.1, while the average workweek index increased to 17.7 from 14.1. The new orders index slid to 28.3 from 38.2, shipments crept to 37.2 from 37.0; and the unfilled orders index slumped to 3.3 from 17.2. The delivery times index reversed to negative 1.6 from positive 1.5, and inventories declined to 9.0 from 17.2.