After reporting a significant slowdown in the pace of growth in regional manufacturing activity in the previous month, the Federal Reserve Bank of Philadelphia released a report on Thursday showing a bigger than expected rebound in the pace of growth in the month of September.
The Philly Fed said its index for current general activity jumped to 22.9 in September after tumbling to 11.9 in August, with a positive reading indication growth in regional manufacturing activity. Economists had expected the index to climb to 17.0.
The bigger than expected increase by the headline index came as the new orders index surged up to 21.4 in September from 9.9 in August and the shipments index climbed to 19.6 from 16.6.
The report said the number of employees index also rose to 17.6 in September from 14.3 in the previous month, indicating a faster rate of job growth.
On the other hand, the Philly Fed noted the survey’s respondents reported diminished price pressures in the month of September.
The prices paid index tumbled to 39.6 in September from 55.0 in August, while the prices received index slumped to 19.6 from 33.2.
Looking ahead, the Philly Fed said expectations for the next six months remained optimistic but noted most broad future indicators showed some moderation.
The report said the diffusion index for future general activity edged down to 36.3 in September from 38.8 in August.
On Monday, the New York Federal Reserve released a separate report showing a much bigger than expected slowdown in the pace of growth in regional manufacturing activity.
The New York Fed said its general business conditions index fell to 19.0 in September from 25.6 in August, while economists had expected the index to dip to 23.0.