Philly Fed Shows Expansion Continuing

The Philly Fed, the data released by the Federal Reserve Bank of Philadelphia, is the Business Outlook Survey and the report is showing that regional manufacturing activity continued to expand in February. The overall index rose to 10.2 this month, up from a reading of 7.3 in January.  New orders and shipments also managed to rise, and firms reported near-steady employment levels but with an increase in the average work hours per week for those workers.

Indicators of future activity fell below those of recent months but continue to reflect optimism.

On total capital spending higher in 2012 than in 2011: Nearly 36 percent called for higher, and 23 percent indicated that spending would be lower.

On prices paid at a reading of 7: 42% of the firms reported higher prices for inputs this month, up from 35% last month.  The prices paid index has now risen for four consecutive months.

FULL FEB-2012 PHILLY FED REPORT