Philly Fed index unexpectedly ticks up in April
Manufacturing conditions in the Philadelphia region unexpectedly improved in April, according to a survey released on Thursday.
The index for current manufacturing activity in the region rose to 23.2 from 22.3 in March, beating expectations for a drop to 21.0. A reading above zero signals expansion.
Meanwhile, the new orders index fell to 18.4 from 35.7, while the shipments index declined to 23.9 from 32.4 in March. However, the prices paid index rose to 56.4 in April from 42.6 the month before.
The diffusion index for future general activity fell to 40.7 in April from 47.9 in March, with nearly 50% of firms expecting an increase in activity over the next six months, while 9% expect to see a decline.
Pantheon Macroeconomics pointed out that the sub-indexes are mixed, with the drop in the new orders gauge possible down to the Easter effect .
"The weighted sum of the key sub-indexes has been a better guide to the national ISM manufacturing index in recent months than the headline Philly Fed, and the message from this report is that the ISM likely will be little changed in April from the 59.3 recorded in March. Overall, these data are consistent with the idea that the manufacturing cycle has peaked, but we see no reason to expect to see a downtrend anytime soon."