Philadelphia Fed's factory gauge moves back into growth territory in September
By Greg Robb
Details weaker but overall index picks up to 1.7 vs. forecast of negative 1.1
The numbers: The Philadelphia Federal Reserve Bank said Thursday its gauge of regional business activity rose to 1.7 in September from negative 7 in the prior month.
Economists polled by the Wall Street Journal expected a negative 1.1 reading in September.
Any reading above zero indicates improving conditions.
Key details: The details of the data were weaker than the headline index.
The barometer on new orders fell 16.1 points to negative 1.5 in September. The shipments index dropped 22.8 points to negative 14.3, the lowest reading since March 2023.
One bright spot was the index of the number of employees. which rose 16.4 points to 10.7, the second positive reading in the last three months.
Companies continued to report overall increases in prices. The prices-paid index rose to its highest level since December 2022.
The measure on six-month business outlook inched up to 15.8 in the month, a sign that manufacturers expect growth to pick up.
Big picture: Regional manufacturing surveys have shown signs of life this month after being on the soft side this summer.
The Empire State Index, a similar measure of factory activity in New York State, showed business activity grew in September for the first time in nearly a year.
Still, economists remain pessimistic about the outlook for manufacturing, The half-point rate cut by the Federal Reserve might help boost activity.
The national ISM factory index has been in contraction territory for 21 out of the past 22 months.
Market reaction: Stocks SPX were set to open higher on Thursday, while the 10-year Treasury yield BX:TMUBMUSD10Y rose to 3.716% in early morning trading.
-Greg Robb
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
09-19-24 0913ET
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