by Calculated Risk on 7/20/2017 10:29:00 AM
Thursday, July 20, 2017
Earlier from the Philly Fed: July 2017 Manufacturing Business Outlook Survey
Manufacturing activity in the region continues to grow but at a slower pace, according to results from the July Manufacturing Business Outlook Survey. The diffusion indexes for general activity, new orders, shipments, employment, and work hours remained positive but fell from their readings in June. Respondents also reported a moderation of price pressures this month. Firms remained generally optimistic about future growth. More than one-third of the manufacturers expect to add to their payrolls over the next six months.Here is a graph comparing the regional Fed surveys and the ISM manufacturing index:
The index for current manufacturing activity in the region decreased from a reading of 27.6 in June to 19.5 this month. The index has been positive for 12 consecutive months, but July’s reading is the lowest since November. ... Firms reported overall increases in manufacturing employment this month, but the current employment index fell 5 points. The index has been positive for eight consecutive months.
Click on graph for larger image.
The New York and Philly Fed surveys are averaged together (yellow, through July), and five Fed surveys are averaged (blue, through June) including New York, Philly, Richmond, Dallas and Kansas City. The Institute for Supply Management (ISM) PMI (red) is through June (right axis).
This suggests the ISM manufacturing index will show slower, but still solid expansion, in July.
Posted by Calculated Risk on 7/20/2017 10:29:00 AM