Manufacturing firms responding to the Business Outlook Survey indicated that regional manufacturing activity increased this month in the Federal Reserve Bank of Philadelphia’s territory, which includes Delaware.
Most of the Fed survey’s broadest current indicators were positive this month, suggesting an improvement in business conditions. The survey’s indicators of future activity continue to suggest that firms expect growth over the next six months. The percentage of firms reporting increased activity this month (34%) was greater than the percentage reporting decreased activity (22%). The demand for manufactured goods as measured by the current new orders index increased, from ‑7.9 to 16.6.
The shipments index also moved back into positive territory, rising 13 points to 4.1. Labor market conditions showed continued weakness, however, with indexes suggesting lower employment among manufacturers.
The percentage of firms reporting employment decreases (20%) exceeded the percentage reporting increases (15%). The percentage of firms expecting increases in activity over the next six months (45%) far exceeded the percentage expecting decreases (12%). Twenty-five percent of the firms indicated they were expecting production increases and would be hiring additional workers over the next six months.
