Philly Fed Index Unexpectedly Bounces Back Into Positive Territory In January

(RTTNews) - The Federal Reserve Bank of Philadelphia released a report on Thursday showing a sharp increase by its reading on regional manufacturing activity in the month January.

The Philly Fed said its diffusion index for current general activity surged to a positive 12.6 in January from a negative 8.8 in December, with a positive reading indicating growth. Economists had expected the index to climb to a negative 3.5.

The report said the new orders index also shot up to 14.4 in January from 5.7 in December, while the shipments index jumped to 9.5 in January from 3.2 in December.

Meanwhile, the number of employees index fell to 9.7 in January from 13.0, although the positive reading still indicates job growth.

Looking ahead, the Philly Fed said most of the survey's broad indicators for future activity declined but continued to suggest expectations for overall growth over the next six months.

The diffusion index for future general activity tumbled to 25.5 in January from 38.1 in December, hitting its lowest reading since July.

On the inflation front, the report said the prices paid index fell to 46.9 in January from 49.3 in December, while the prices received index rose to 27.8 in January from 26.0 in December.