Research >> Economics
Philadelphia Fed January Outlook Points to Growth
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Results from the Business Outlook Survey suggest that regional manufacturing activity continues to expand in January. All of the broad indicators remained positive this month and there was an apparent pickup in new orders and employment. Increases in input prices continue to be widespread this month, and more firms reported increases in prices for their manufactured goods. The survey's broad indicators of future activity suggest that firms expect a continued expansion in activity over the next six months.
Indicators All Point to Growth
The survey's broadest measure of manufacturing conditions, the diffusion index of current activity, edged down slightly from a revised reading of 20.8 in December to 19.3 in January. The index has been positive for four consecutive months, following a two-month dip into negative territory. The demand for manufactured goods is showing continued improvement this month: The new orders index increased 13 points this month, the fourth consecutive monthly increase. The shipments index also improved, increasing 8 points.
Firms' responses continue to suggest that labor market conditions are improving.The current employment index increased 13 points, and for the fifth consecutive month, the percentage of firms reporting an increase in employment (25 percent) is higher than the percentage reporting a decline (7 percent). Twice as many firms reported a longer workweek (22 percent) than reported a shorter one (11 percent).
Posted: January 20, 2011 Thursday 10:00 AM