The manufacturing activity in Philadelphia continued to rise this month despite slowed down in general activity, shipments, and new orders.
- The diffusion index for current manufacturing activity declined to 21.9 in July from 30.7 in June. 33% of firms reported an increase in current activity in July, while only 11% reported decline in manufacturing activity.
- Despite decline in price indexes, the firms continued to report price pressures. Price paid index dropped 11 points to 69.7 in July after hitting a 42-year high in June.
- The firms are still optimistic about growth. Nearly 59% of the manufacturing firms expect increases in activity in the next 6 months.
- 63% of the firms expect an increase in employment in the next 6 months, while 6% expect a decline in employment.
Firms were concerned with a potential increase in wages by 4 to5% and increase in total compensation by the same percentages in 2021.
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Source: Federal Reserve Bank of Philadelphia.