{"id":171127,"date":"2023-02-16T15:36:56","date_gmt":"2023-02-16T15:36:56","guid":{"rendered":"https:\/\/precoinnews.com\/?p=171127"},"modified":"2023-02-16T15:36:56","modified_gmt":"2023-02-16T15:36:56","slug":"philly-fed-index-unexpectedly-shows-steep-drop-in-february","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/philly-fed-index-unexpectedly-shows-steep-drop-in-february\/","title":{"rendered":"Philly Fed Index Unexpectedly Shows Steep Drop In February"},"content":{"rendered":"
Philadelphia-area manufacturing activity unexpectedly contracted at an accelerated rate in the month of February, 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 activity plunged to a negative 24.3 in February from a negative 8.9 in January, with a negative reading indicating a contraction. Economists had expected the index to inch up to a negative 7.4.<\/p>\n
With the unexpected nosedive, the Philly Fed Index dropped to its lowest level since hitting a negative 43.2 in May 2020.<\/p>\n
The unexpected slump by the headline index partly reflected an accelerated contraction in new orders, with the new orders index falling to a negative 13.6 in February from a negative 10.9 in January.<\/p>\n
The shipments index also declined to 8.7 in February from 11.1 in January, while the number of employees index slid to 5.1 from 10.9.<\/p>\n
While the report also showed the prices received index tumbled to 14.9 in February 29.9 in January, the prices paid index inched up to 26.5 from 24.5.<\/p>\n
Looking ahead, the Philly Fed said most of the survey’s future indicators were positive but low, suggesting tempered expectations for growth over the next six months.<\/p>\n
The diffusion index for future general activity fell to 1.7 in February from 4.9 in the previous month.<\/p>\n
“Weakness in manufacturing has been persistent amid a weakening in the global economy<\/span>, past appreciation in the U.S. dollar and higher interest rates stifling demand for goods,” said Gurleen Chadha, U.S. Economist at Oxford Economics.<\/p>\n She added, “With flaring worries of the economy falling into a mild recession this year, the worst is likely ahead for manufacturing.”<\/p>\n A separate report released by the Federal Reserve Bank of New York on Wednesday showed a significant slowdown in the pace of contraction in regional manufacturing activity in the month of February.<\/p>\n The New York Fed said its general business<\/span> conditions index soared to a negative 5.8 in February from a negative 32.9 in January. Economists had expected the index to jump to a negative 18.0. <\/p>\n