Philadelphia Fed Posts Huge Gains in Employment

The current activity index fell from its relatively high reading in August, and other broad indicators increased from the previous month. The current activity index reading of 22.5 was down from 28.0. However, new current new orders and shipments increased this month by one point and five points respectively.

The employment index increased 12 points to its highest reading since May of 2011.

The reading for future manufacturing conditions reflects a sentiment of general optimism for growth in both activity and employment, despite a decline in most indicators. The general activity index decreased by 10 points, along with new orders and shipments following suit. The future employment index increased sharply to 39.6 from 24.7, which is the highest reading since September 1983.

Firms anticipating increases in total production growth for the third quarter were measured at 59% of those surveyed, against 29% that did not expect an increase. Overall firms expect a growth of 2% for this quarter.

In anticipation for the fourth quarter, 54% of firms expect an increase in production growth, compared to 21% who forecast a deceleration in growth.

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