NEW YORK – The region's manufacturing sector continued to show signs of growth, although the general business conditions index decreased to 11.5 in October from 14.1 in September, this month’s Federal Reserve Bank of Philadelphia Report on Business indicates.
Economists surveyed by Thomson Reuters predicted a reading of 12.0 for the index.
“Indexes for general activity, new orders, and shipments all registered positive readings for the third consecutive month, but they suggest only marginal growth. Indexes for employment and work hours remained negative, but trends suggest that employment losses have moderated in recent months. A growing percentage of firms have indicated higher input prices in recent months, but price increases for their own manufactured goods are not prevalent. The region's manufacturing executives expect business activity to increase over the next six months; however, expectations have moderated somewhat in the last several months,” according to the survey.
The prices paid index was 21.3, compared to 14.9 in September, new orders index rose to 6.2 from 3.3, shipments dropped to 3.3 from 8.2, the unfilled orders index gained to negative 1.3 from negative 7.4, the delivery times index widened to negative 9.3 from negative 8.9, inventories declined to negative 31.8 from negative 18.1, prices received improved to negative 4.3 from negative 10.6, the number of employees index narrowed to negative 6.8 from negative 14.3, and average employee workweek slipped to negative 4.7 from negative 3.9.
The six months from now general business conditions index dropped to 39.8 from 47.8 in last month’s survey, the prices paid index was at 32.8, down from 40.7 in the prior survey, and the prices received index was at 11.0, up from 9.7. The capital expenditures index rose to 8.5 from 0.8 last month. The number of employees index slipped to 7.4 from 20.5, while the average workweek index fell to 21.3 from 28.2. The new orders index decreased to 40.3 from 50.2; shipments fell to 37.8 from 54.9; and the unfilled orders index declined to 12.3 from 24.5. The delivery times index slumped to 3.2 from 9.4, and inventories reversed to positive 4.1 from negative 1.2.
