Philly Fed Survey: New Orders Continue to Rebound

Philly Fed Bottom Line: As the breakdown of last month's components suggested it might, the headline index for the survey of Manufacturing activity of mid-Atlantic based businesses jumped. New order growth nearly returned to its average pace of the last 12 months, indicating overall strong manufacturing growth. The Philadelphia Fed Index ROSE by 3.5 points in December to 26.2%, compared with market expectations for 21.0%. This indicates that manufacturing activity in the mid-Atlantic region expanded again in the last month. On an ISM-weighted basis, the index rose less than the headline

• New Orders expanded and accelerated sharply.
• Shipments expanded and also accelerated sharply.
• Unfilled Orders decelerated sharply while Inventories dropped.
• Employment increased sharply. This portends better factory job creation in the upcoming December payroll employment report.
• Prices Paid decelerated sharply.
• The 6-Month Outlook component improved.