Philly Fed: Mid-Atlantic Factory Sector Shrinks Again
A closely watched, early indicator of factory activity from U.S. mid-Atlantic states showed regional manufacturing shrank in February for the third consecutive month.
The report said 41% of manufacturers said their shipments were falling, while only 12% reported gains. Orders for new goods continued to fall, which points to more weakness in future shipments.
Thursday’s report from the Philadelphia Federal Reserve Bank is one in a series of regional indicators that point to the economy’s strength well before national reports emerge.
The Philly Fed said its latest index was not as weak as in January but was still well below the level that shows a contraction under way. That is bad news for trucking companies looking for the slump to bottom out so that freight shipments from U.S. factories can begin to grow again.
This Fed’s territory includes eastern Pennsylvania cities of Harrisburg, Scranton and Wilkes-Barre as well Philadelphia; southern New Jersey including Trenton; plus Wilmington and Dover in Delaware.
