Philly Fed Index Ahead of Expectations in February
Economic Update: Philadelphia Fed Index
The Philadelphia Fed Business Outlook Index was reported at +10.2 in February, which was above the consensus for a reading of +9.6 and last month’s reading of +7.3
For comparison purposes:
- January: +7.3
- December: +10.3
- November: +3.6
- October: +8.7
- September: -17.5
- August: -30.7
- July: +3.2
- June: -7.7
- May: 3.9
- April: 18.5
- March: 43.4
- February: 35.9
The Prices Paid (inflation) index rose 7 points.
The New Orders index: +11.7 vs +6.9 last month – up for five consecutive months.
The Employment index: +11.6 vs. +1.1 last month.
Responses to the Business Outlook Survey this month suggest that regional manufacturing activity continued to expand in February. The survey’s broad indicators for general activity, new orders, and shipments all increased from their readings in January. Firms reported near-steady employment levels but an increase in average work hours. More firms reported higher input prices this month, and a sizable share of firms reported price increases for their own manufactured goods. The survey’s broad indicators of future activity fell from levels in recent months but continue to reflect optimism about future manufacturing growth.
According to Investopedia, the Philly Fed Index is a regional federal-reserve-bank index measuring changes in business growth. The index is constructed from a survey of participants who voluntarily answer questions regarding the direction of change in their overall business activities. The survey is a measure of regional manufacturing growth. When the index is above 0 it indicates factory-sector growth, and when below 0 indicates contraction.
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Posted on 2/16/2012 at 10:13 AM
