Philadelphia Fed: ‘Immersion’ of manufacturing index in December

Manufacturing activity in Philadelphia fell more than expected in December, according to data released today by the Federal Reserve of Philadelphia.

In particular, the Fed Philadelphia manufacturing activity index fell to 15.4 points in December from 39 points in the previous month. Although any indication above zero indicates an improvement in conditions, a significant drop in the index indicates a “braking” of manufacturing activity in the area.

Economists in a Wall Street Journal poll expected a much smaller decline in the index, to 30 points.

During the same period, the index of new orders fell by 33.7 points, to 13.7 points, while the index of shipments was 16.8 points lower, at 15.3 points.

Outstanding orders also fell, falling by 16 points compared to the previous month, to 11.4 points.

Finally, the index of expectations for the next half of the year decreased by 9.5 points to 19 points in December, from 28.5 points in November.

On the other hand, the index for the number of employees improved, which rose to 33.9 points compared to 27.2 points in November.

The number of employees rose to 33.9 from 27.2 last month, the regional bank said.