Philly Fed: Prices Surge, Order Growth Slows

Bottom Line: The Philadelphia Fed's index of manufacturing activity fell more than expected in April as manufacturers reported sharply higher input prices and slower new order growth. The prices paid index surged to its highest level since June 1979. Prices received also rose but at a slower pace, suggesting margin compression. Outlooks for future activity fell sharply. On the plus side, employment continued to grow after hitting record highs in March. While most manufacturers reported steady employment, 42% reporting finding qualified candidates to fill openings. Overall, manufacturing activity remains volatile amid supply chain pressures. And while the level of activity remains historically strong, there are indications of deceleration.The Philadelphia Fed Manufacturing Index FELL 9.8 points to 17.6, BELOW the 3-Month average of 20.33, BELOW the 6-Month average of 23.1 and 32.6 BELOW the year-ago level.