Philadelphia-Area Manufacturing Expands at Slower Pace in September

Manufacturing in the Philadelphia area expanded in September for the fourth straight month, but at a slower pace, the Federal Reserve Bank of Philadelphia said Thursday.

“Firms’ expectations for growth over the next six months continued to improve in September, and a significant share of firms indicated that they had recently increased their fourth-quarter production plans,” The Fed said in its statement.

The Fed’s general economic index was 14.6, compared with 22.1 in August. A number greater than zero signals a higher percentage of the manufacturers surveyed reported an improvement in business than deterioration.

Economists had expected the index to decline to 17, Bloomberg reported. Last month’s reading was the strongest since June 1998.

Manufacturing accounts for about 20% of U.S. economic production and is one of trucking’s largest and most important customer segments.

The Fed said that its new orders index rose to 19.3, the highest since November 1999, from 14.6.

The index of inventories fell to 2.8 this month from 6.4, while an index of current manufacturing employment rose to minus 4.7 from minus 8.7 last month.

In addition, it said the outlook for six months from now rose to 62.2 from August's 62. That was the highest since a reading of 66.7 in June 1992.

The Philadelphia Fed surveys manufacturers in eastern Pennsylvania, Delaware and southern New Jersey for the index.