Philly Fed manufacturing survey shows inflation pressures at 27-month low
2022.12.15 10:16
© Reuters. FILE PHOTO: A worker arranges slabs in the factory at IceStone, a manufacturer of recycled glass countertops and surfaces, in New York City, New York, U.S., June 3, 2021. REUTERS/Andrew Kelly/File Photo/File Photo
(Reuters) – Manufacturing activity in the U.S. mid-Atlantic region contracted for a fourth straight month in December, but factory operators reported a brighter outlook and said inflation pressures were easing notably, a survey released Thursday showed.
The Philadelphia Federal Reserve’s monthly manufacturing activity index climbed to negative 13.8 from negative 19.4 in November. Economists polled by Reuters had estimated a reading of negative 10.
New orders tumbled to the lowest since the early days of the coronavirus pandemic in April 2020 and firms said employment shrank.
But the survey’s measure of prices paid by goods producers tumbled to a 27-month low and came in below the series historical average for the first time since September 2020, the latest signal that inflation has begun to recede from the 40-year highs marked earlier this year.
Moreover, manufacturers reported a positive outlook for the first time since May. The outlook for new orders, shipments and factory employment all improved.
