Philly Fed Index Rebounds But Remains Negative In November

(RTTNews) - After reporting a steep drop by its reading on regional manufacturing activity in the previous month, the Federal Reserve Bank of Philadelphia released on report on Thursday showing the index rebounded in November but remained in negative territory.

The Philly Fed said its diffusion index for current general activity jumped to a negative 1.7 in November after plummeting to a negative 12.8 in October, although a negative reading still indicates contraction. Economists had expected the index to climb to a negative 3.1.

The headline index rebounded from its lowest level in six months despite significant decreases by readings on new orders and shipments.

The report said the new orders index plummeted to a negative 8.6 in November from a positive 18.2 in October, hitting its level since April.

The shipments index also plunged to a negative 8.7 in November from a positive 6.0 in October, returning to negative territory for the first time since May.

Meanwhile, the Philly Fed said the number of employees index crept up to 6.0 in November from 4.6 in October, as firms continued to report overall increases in employment.

The prices paid index also jumped to 56.1 in November from 49.2 in October, although the prices received index slumped to 17.7 in November from 26.8 in October.

Looking ahead, the Philly Fed said its diffusion index for future general activity surged to 49.6 in November from 36.2 in October, reaching its highest level in a year, as expectations for growth over the next six months were more widespread.

The Federal Reserve Bank of New York released a separate report on Monday showing its reading on regional manufacturing activity unexpectedly increased in the month of November.

The New York Fed said its general business conditions index jumped to 18.7 in November after surging to 10.7 in October, with a positive reading indicating growth. Economists had expected the index to pull back to 5.8.

With the unexpected advance, the general business conditions index reached its highest level since hitting 20.2 last November.