Skip to Main Content

Article Attachment

The attached file contains this articles commentary as well as tables and charts of the data.

Philly Fed Survey: Slight Retreat But Still Very Strong

March 16, 2017
Bottom Line: The Philadelphia Fed's survey of mid-Atlantic manufacturers fell from February's all-time highs but still indicated significant strength. 44% of survey respondents indcated growth in activity in March, while only 11% reported declines. They reported better new orders but growing inventories. Still delivery times rose slightly and unfilled orders increased. This was stronger than Empire State Manufacturing Survey and suggests that the early outlook for the national ISM Manufacturing Survey, to be reported on April 3, has a positive bias.

The Philadelphia Fed Index FELL by 10.5 points in March to 32.8%, compared with market expectations for 30.0%. This indicates that manufacturing activity in the mid-Atlantic region still expanded in the last month. On an ISM-weighted basis, the index increased moderately, indicating that the details were positive compared to the headline figure.

New Orders increased sharply by 38.6%. Shipments increased by 32.9%. Unfilled Orders rose sharply while Inventories climbed.

Employment increased sharply by 17.5%. This portends better factory job creation in the upcoming March payroll employment report.

Prices Paid accelerated sharply.

The 6-Month Outlook improved.