Philadelphia-area manufacturing activity expanded at a slightly slower rate in the month of June, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.<\/p>\n
The Philly Fed said its diffusion index for current general activity slipped to 30.7 in June from 31.5 in May, although a positive reading still indicates growth in regional manufacturing activity. Economists had expected the index to edge down to 31.0.<\/p>\n
The modest decrease by the Philly Fed Index reflected a notable slowdown in the pace of growth in new orders, with the new orders index tumbling to 22.2 in June from 32.5 in May.<\/p>\n
On the other hand, the report said the shipments index climbed to 27.2 in June from 21.0 in May, indicating shipments increased at a faster rate.<\/p>\n
The number of employees index also spiked to 30.7 in June from 19.3 in May, pointing to a significant acceleration in the pace of job growth.<\/p>\n
The report also showed the prices received index rose to 80.7 in June from 76.8 in May, while the prices received index advanced to 49.7 from 41.0.<\/p>\n
Looking ahead, the Philly Fed said most future indicators improved, suggesting that more firms expect overall growth over the next six months.<\/p>\n
The diffusion index for future general activity surged to 69.2 in June from 52.7 in May, reaching its highest level in nearly 30 years.<\/p>\n
“Our Recovery Trackers signal upbeat regional dynamics, and production is poised to stay strong amid a summer boom,” Oren Klachkin, Lead U.S. Economist at Oxford Economics. <\/p>\n
He added, “A strong drumbeat of healthy goods demand, rising capital expenditures, strengthening external demand, and fiscal stimulus will keep regional manufacturing on a solid course.”<\/p>\n
On Tuesday, the New York Fed released a separate report showing New York manufacturing activity expanded at a slower rate in the month of June.<\/p>\n