Nov. Philly Fed index slips to 11.5 -
Thursday, November 17, 2005 5:54:29 PM
afxpress.com
WASHINGTON (AFX) -- The manufacturing sector expanded at a slower pace in November in the Philadelphia region, the Federal Reserve Bank of Philadelphia reported Thursday. The Philly Fed diffusion index fell to 11.5 in November from 17.3 in October. Readings over zero indicate expansion. The index is based on surveys of firms in the region. "Indicators continue to reflect growth in the manufacturing sector," the bank said. The Philly Fed index is closely watched by economists and traders for clues it might shed about the national manufacturing sector. It is one of the first indicators released for November. Economists polled by MarketWatch were expecting the index to fall to about 16.9. The new orders index dropped to 12.7 from 18.6, while the shipments index rose to 23.4 from 19.5. Employment indexes showed expansion in hiring and the average workweek
The unfilled orders index fell to a negative 7.8 from 0.8, indicating fewer backlogged orders. Inflationary pressures eased modestly. The prices paid index dropped to 56.8 from 67.6, while the prices received index was just about steady at 32.5. More than 80% of firms expect to pay higher prices for energy next year, with 38% expecting energy prices to rise more than 10%. Manufacturing firms in the area were more optimistic about the near term. The expectations index rose to 29.2 from 22.0. In other reports, the Federal Reserve said industrial production bounced back in October, rising 0.9%. Manufacturing output rose 1.4%, the most in six years. Meanwhile, housing starts slipped in October to a still-strong 2.014 million annual pace, the Commerce Department said. First-time jobless claims fell to the lowest level in seven months last week, the Labor Department said |
