Manufacturing activity in the Philadelphia Region expanded at a slower pace in October, the Federal Reserve Bank of Philadelphia said Oct. 17.
The regional Fed’s index fell to a 19.8 reading from 22.3 in September, the highest reading since March 2011. Readings below zero indicate contraction, and those above zero show expansion.
Uncertainty from the debt-ceiling debate in Washington undermined consumer confidence, but demand for home-related goods are keeping factories buys, Bloomberg News reported.
“Prior to this turmoil, it looked like manufacturing was accelerating, and I think once we get through this that will still be the trend,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics told Bloomberg.
The reading was above economists’ median forecast of 15, Bloomberg reported.
Manufacturers in the Philadelphia Region are optimistic about the future with the outlook index for six months from now rising to 60.8, the highest since September 2003, from 58.2 in September, Bloomberg reported.