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Macroeconomics  |  August 16, 2012 17:25:00

Philadelphia area manufacturing activity eased in August drop, outlook deteriorating again


Manufacturing activity in the central Atlantic slowed again in August and remained in contraction for the fourth month, said the Philadelphia Fed's latest survey. The current activity index eased only to fall to -7.1 points from -12.9 points in July. A majority consensus expected improvement to -4.0 points. The neutral zero level separating expansion from decline. Future indicator fell by 6.8 points to +12,5 and was the weakest since August last year.

New orders showed a slight decline in the third month in a row, the supply is continuously decreased for the fourth month and the rate of decline was deeper than in July.Existing backlogs of orders slowed for the fourth month. Manufacturers to cut jobs at the fastest pace since September 2009. Stocks of finished products remained unchanged from June at a continuous decline. Input prices rose faster than in July, but remained subdued. Prices of finished goods increased very slightly for the second month. Outlook has deteriorated sharply, corporations expect slower growth of new orders, deliveries and employment and higher cost pressures.



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