In October, Philadelphia’s regional manufacturing activity expanded overall. The index for current general business activity rose from 1.7 to 10.3. More than 24% of firms reported increased activity this month, while 14% reported decreases and nearly 57% reported no change. The indexes for new orders and shipments also increased and turned positive. On the other hand, firms reported a decrease in employment after rising last month, with the employment index falling back into negative territory at -2.2.
Both price indexes edged down but continue to indicate overall increases in prices. The prices paid index declined from 34.0 to 29.7 but remains at an elevated level that reflects the notable portion of firms experiencing higher input costs. The prices received index also fell and remained significantly lower than the prices paid index at 17.9, exhibiting how manufacturers are eating a portion of those higher costs paid.
Looking ahead, most future indicators increased. The index for future general business activity rose markedly to 36.7, indicating growing optimism among firms. A higher proportion of firms still expected increases in activity. Additionally, the new orders, shipments and future employment indexes also rose. On another positive note, the future prices paid index decreased, while the future prices received increased. On the other hand, the future capital expenditures index moved down slightly.