{"id":157775,"date":"2019-10-17T08:00:21","date_gmt":"2019-10-17T12:00:21","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=157775"},"modified":"2019-10-17T06:23:14","modified_gmt":"2019-10-17T10:23:14","slug":"philly-fed-manufacturing-index-preview","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/philly-fed-manufacturing-index-preview\/","title":{"rendered":"Philly Fed Manufacturing Index Preview"},"content":{"rendered":"
October 17, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The Philadelphia Fed manufacturing index report is due for release later today. Economists forecast that manufacturing activity as measured by the index will fall to 7.3 for October<\/strong>.<\/p>\n

This comes after the index stood at 12.0 in September. The Philly Fed manufacturing index has rebounded sharply after slipping to 0.3 in June. This was the second-lowest reading on the index. It had previously slipped to zero in February this year.<\/p>\n

The Philly Fed manufacturing index is a regional index from the Philadelphia Federal Reserve Bank. It covers businesses in the regions of eastern and central Pennsylvania, the nine southern counties of New Jersey, and Delaware.<\/p>\n

Therefore, the report is rather limited in scope. It doesn\u2019t have much impact.<\/p>\n

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Philly Fed Manufacturing Index, September 2019<\/em><\/figcaption><\/figure>\n

However, the results of the Philly Fed Business Outlook Survey (as it is also known as) feeds into the Chicago Fed national activity index.<\/strong>\u00a0The regional surveys on businesses give an idea into the national manufacturing activity gauge.<\/p>

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Investors don\u2019t pay much attention to the report on a monthly basis. The exception being when the index makes a surprise move, such as in February and June this year.<\/p>\n

Last month\u2019s report showed that businesses were fairly stable. The index slipped from 16.8 to 12.0. After a strong rebound in July, manufacturing activity in the region has been somewhat weaker.<\/strong><\/p>\n

Most of the manufacturing sector in the US has been slow. This is a trend also seen on a global level. The slowdown in manufacturing comes because of the late-cycle economic growth.<\/p>\n

Furthermore, the trade tensions between the US and China and Europe have also made things a bit more complicated.<\/p>\n

Philly Fed Index Suggests Continued Growth<\/strong><\/h2>\n

In the report for September, the Philly Fed index showed that the various underlying sub-components were on track. This indicated that although the pace of growth was slower, it still remained in the uptrend.<\/p>\n