NEW YORK – The region's manufacturing sector picked up, as the general business conditions index increased to 16.7 in November from 11.5 in October, 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 improved this month. The overall level of employment was mostly steady this month, and the average work hours index was positive for the first time in more than two years. The region's manufacturing executives expect increasing activity over the next six months, although expectations have moderated somewhat in the last several months. Low rates of current capacity utilization are suppressing capital spending plans,” according to the survey.
The prices paid index was 14.9, compared to 21.3 in Ocotober, new orders index rose to 14.8 from 6.2, shipments jumped to 15.7 from 3.3, the unfilled orders index dipped to negative 5.4 from negative 1.3, the delivery times index widened to negative 12.7 from negative 9.3, inventories climbed to negative 17.3 from negative 31.8, prices received improved to negative 1.5 from negative 4.3, the number of employees index narrowed to negative 0.5 from negative 6.8, and average employee workweek reversed to positive 2.0 from negative 4.7.
The six months from now general business conditions index dropped to 36.8 from 39.8 in last month’s survey, the prices paid index was at 30.8, down from 32.9 in the prior survey, and the prices received index was at 1.2, down from 11.0. The capital expenditures index rose to 13.8 from 8.5 last month. The number of employees index rose to 8.3 from 7.4, while the average workweek index fell to 9.9 from 21.3. The new orders index decreased to 35.7 from 40.3; shipments fell to 29.2 from 37.8; and the unfilled orders index declined to 2.1 from 12.3. The delivery times index slumped to negative 7.9 from positive 3.2, and inventories rose to 5.9 from 4.1.
