Manufacturing activity has picked up this month in the Mid-Atlantic region. The Philadelphia Federal Reserve's index rose nearly two points to 24.3 to indicate significant improvement in the sample's subjective assessment of general business conditions.
Specific readings on new orders and backlog orders are both picking up steam which is good news for future shipments and employment. Shipments increased though at a slower pace than November's pace. Manufacturers in the sample added to their workforces though, like shipments, at a slower pace than in November. They did however sharply extend the workweek, that is they worked their existing workforce longer. Hopefully employment will begin to pick up in line with orders.
Both input prices and output prices spiked reflecting rising fuel and commodity costs. This could mark the beginning of a trend or could just be a one-time blip. This report, led by new orders, adds to this week's good news on the manufacturing sector.
Here's the relevant chart:
Like the Empire State survey, the Philly Fed number dropped probably as a result of the EU situation. However, it appears the region has bounced back.
