Manufacturing activity in the heavily industrialized region of Philadelphia in the northeastern United States contracted again in July, for the second month in a row, according to data from the bank’s regional branch. central american (Fed) published on Thursday. The general index plunged by 9 points, and fell to -12.3 points, according to this survey carried out among industrialists in the region. This is much less than expected by analysts who were anticipating a further contraction, albeit less pronounced. They saw the index settle at -1.2 points. The index had fallen back into negative territory in June, for the first time since May 2020. It signals a contraction in activity when it settles below zero. “Survey indicators for general activity and new orders fell further into negative territorycommented the Fed in its statement.
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In detail, the index measuring deliveries was positive and rose slightly, while those measuring inventories and order books were negative. Employment indicators fell, but remained positive. As for prices, the indices measuring them at the entry and exit of the factory have fallen, but remain high, while inflation is still at its highest for more than 40 years. “Future indicators suggest that companies expect an overall decline in activity and new orders, but an increase in shipments and employment over the next six months“, underlines the Fed. Measured in a highly industrialized region of the northeastern United States, the manufacturing activity index is a leading indicator considered to be a good barometer of the evolution of American economic activity. The survey was conducted from July 11 to 18.
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