2025.08.2112:36:35UTC+00Philadelphia Factory Activity Posts Surprise Contraction

The Philadelphia Fed Manufacturing Index saw a downturn, dropping to -0.3 in August 2025 from July's peak of 15.9 over the past five months. This decline was significantly below analysts' predictions, which anticipated a figure of 7, indicating a fresh contraction in manufacturing activities. The new orders index notably decreased by 20 points, reaching -1.9, marking its first negative result since April. Meanwhile, the shipments index fell to 4.5 yet remained in positive territory. Despite this, firms still reported overall employment growth, although the employment index dipped by 4 points to 5.9. Price indicators continued to show high levels, with the prices paid index climbing 8 points to 66.8, its highest since May 2022. The prices received index also slightly increased by 1 point to 36.1. Companies sustained optimistic growth expectations for the next six months, with these outlooks being fairly widespread.