Philly Fed shows slower growth
Inflationary pressures ease; orders, shipments rise
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By Rex Nutting, MarketWatch
Last Update: 12:25 PM ET Mar 16, 2006
WASHINGTON (MarketWatch) -- Industrial activity in the Philadelphia region expanded for the ninth straight month in March, the Federal Reserve Bank of Philadelphia said Thursday.
The Philly Fed business activity index fell to 12.3 from 15.4 in February. Economists expected the index to fall to 13.8, according to a survey conducted by MarketWatch. See Economic Calendar.
Readings over zero indicate growth.
The new orders index rose to 20.8 vs. 12.5. Shipments rose to 24.3 vs. 22.5. Read the full report.
Inflationary pressures moderated. Prices paid fell to 17.2 vs. 30.5, the fifth straight decline. The prices received index fell to 15.4 vs. 18.2.
Employment grew modestly. The employee index fell to 5.4 from 8.7, while the workweek dropped to 6.3 from 8.7.
In a special question, 51.4% of the firms said they had had difficulty in filling jobs because applicants weren't qualified, up from 42% who had trouble filling jobs in April 2004. Lack of skills in using machinery were the most often cited
Firms in the region were slightly less optimistic about the future. The expectations index fell to 14.6 from 31.1. A plurality of firms expects new orders and shipments to increase. A majority of firms don't expect any change in employment or prices in the coming six months.
In other reports released Thursday, the Labor Department said the consumer price index rose 0.1% in February, as did the core CPI. See full story.
Housing starts fell back in February to 2.12 million annual pace, the Commerce Department said. See full story.
Initial jobless claims rose to the highest level this year, while continuing claims fell again to a five-year low, the Labor Department said. See full story. End of Story
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