The general conditions index from this business outlook survey is a diffusion index of manufacturing conditions within the Philadelphia Federal Reserve district. This survey, widely followed as an indicator of manufacturing sector trends, is correlated with the ISM manufacturing index and the index of industrial production. Why Investors Care
| Released on 8/21/08 For Aug 2008 | ||||||||||||
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Highlights
Regional manufacturing activity continues to contract in the Mid-Atlantic region. The Philadelphia Federal Reserve's manufacturing index came in at -12.7 for August, up from -16.3 in July but continuing an extended string of declines. New orders are especially on the decline, at -11.9 vs. July's -12.1 and signaling declining output in the months ahead. Unfilled orders are also contracting, at -8.7 with inventories understandably also on the decline at -6.6. There is some good news on input prices as prices paid eased back nearly 20 points to a still very elevated 57.5. Employment readings continue to decline. The Philadelphia Fed's report has been consistently showing weaker results than similar reports including from the Institute For Supply Management.
The general business conditions component of the Philadelphia Fed's business outlook survey posted its eighth consecutive negative reading in July, coming in at minus 16.3 versus minus 17.1 in June. The new orders index pointed to further weakness overall for August as new orders remained notably negative at minus 12.1, compared to minus 12.4 in June. Prices in July were quite elevated with prices paid at 75.6 and prices received at 28.8.
Philadelphia Fed survey Consensus Forecast for August 08: -15.0
Range: -17.6 to -11.0
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The Philadelphia Fed's business outlook survey is a good leading indicator for the index of industrial production. It is reported in the third week of the month and thus has a lead time of nearly three weeks. |
| 2008 Release Schedule | ||||||||||||||||||||||||||
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