Today's report on manufacturing activity in the Philadelphia region came in better than expected (23.9 vs 16.0), hitting its highest level since March 2011. This report confirmed the strength in manufacturing that we saw in the Empire Manufacturing report earlier this week.
The table to the right breaks down the monthly changes in the Philadelphia Fed headline report and each of its components. As shown, seven of the nine subcomponents increased this month, led higher by Shipments and New Orders. On the downside, the only two components that saw a decline were Unfilled Orders (9.1) and Prices Paid (-0.3), which should provide a small sense of relief to investors concerned about inflation. With regards to employment, while they didn't see the largest increases, both the Number of Employees and Average Workweek saw increases this month. This was in contrast to the Empire Manufacturing report which actually showed a decline in the Number of Employees while the Average Workweek increased.
Finally, as mentioned above New Orders and Shipments both saw the largest m/m increases in July's report. Following those increases, both sub-indices are now at their highest levels in 10 years!
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