Manufacturing Activity Rebounds in August - Philly Fed Index

By Scott Kanowsy 

Investing.com -- Manufacturing activity in the mid-Atlantic region of the United States unexpectedly accelerated in August, reversing two months of contraction, in a potential sign of brightening in a recently gloomy economic outlook.

The Philadelphia Federal Reserve's monthly manufacturing index, widely viewed by economists as a trustworthy signal of business conditions across the nation, came in at 6.2 - above analysts' forecasts of -5.0.

The figure, which at above zero indicates improving output, follows negative readings of -3.3 and -12.3 in June and July, respectively.

Most firms participating in the survey also reported steady employment levels, while the report's inflation gauge dropped for a fourth straight month to the lowest level since December 2020. The prices paid index stood at 43.6, down by about 50% against a record high reached in April, but is still elevated versus pre-pandemic readings.

Meanwhile, respondents indicated that they still largely expect overall declines in activity over the next half of a year. The six-month outlook index remained in negative territory at -10.6 despite rising by 8 points compared to the mark in July.