The Philadelphia Fed’s August Manufacturing Business Outlook Survey showed a strong expansion in regional manufacturing. The general activity index rose to 47.4, its highest level since April 2021, while the employment index climbed to 27.9, its highest since April 2022.
The outlook was even stronger, with the future activity index jumping to 73.6, its highest reading since 1983. Expectations for new orders, shipments and capital spending also rose sharply. Price pressures eased somewhat but remained elevated, with 80% of firms expecting competitors to raise prices if industry costs increase.
