Philadelphia Fed Manufacturing Index Jumps To Highest Level Since 2021

The Philadelphia Fed’s manufacturing index soared to its highest reading since 2021, surging 31.1 points to 41.4 in July. Any reading above zero signals expansion, so the jump points to a sharp acceleration in factory activity across the region. The index had been hovering near flat in prior months before this breakout. The new orders and shipments components also climbed, while the employment gauge turned positive for the first time in three months. The data adds to a run of mixed regional Fed surveys – the Empire State index also showed improvement earlier this week. For a broader look at how these manufacturing readings feed into the macro picture, see the market analysis section.