Manufacturing in the region covering eastern Pennsylvania, southern New Jersey and Delaware surprisingly rebounded into growth mode in September, according to the Philadelphia Fed's Manufacturing survey on Thursday. The rebound follows nine months of slowdown.
The general activity index improved to +3.8 from August's -12.7. The major gain was due to a rebound in new orders, which rebounded to +5.6 from last month's -11.9. Shipments also rebounded to +2.6 from a previous -3.3.
Prices paid moderated significantly with an index of 31.5, down from the previous month's 57.5 reading.
"Although 43 percent of the firms reported paying higher prices for inputs, this was down from 65 percent in August and 77 percent in July," the report said.
Employment neared neutral levels at -0.9, up from -1.1 in the previous month.
"Demand for manufactured goods, as represented by the survey's new orders index, improved significantly, increasing 18 points, to a positive reading of 5.6," the report noted.
By Patrick McGee and edited by Stephen Huebl
©CEP News Ltd. 2008