U.S. regional manufacturing sector continues to grow in December: survey

Source: Xinhua| 2018-12-21 02:14:38|Editor: yan

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HOUSTON, Dec. 20 (Xinhua) -- The December Manufacturing Business Outlook Survey indicated the manufacturing sector in some eastern U.S. states continued to grow but remained subdued, the Federal Reserve Bank of Philadelphia reported on Thursday.

The survey, conducted by the Federal Reserve Bank of Philadelphia which is responsible for the Third District covering eastern Pennsylvania, southern New Jersey and Delaware, suggested that the region's manufacturing activity continued to grow but remained subdued in December. The survey's broad indicators were positive, but their movements were mixed.

The diffusion index for current general activity decreased from 12.9 in November to 9.4 this month, its lowest reading since August 2016. Over 26 percent of the manufacturers reported increases in overall activity this month, while 17 percent reported decreases.

The new orders index increased 5 points to 14.5 but remained notably lower than its average reading for the year.

The firms continued to report overall higher employment. Over 24 percent of the responding firms reported increases in employment this month, while 6 percent of the firms reported decreases in employment. The current employment index remained positive and edged 2 points higher to 18.3. The current workweek index fell 6 points to 0.5, its lowest reading in 26 months.

The diffusion index for future general activity increased 5 points to a reading of 31.7 this month. Over 43 percent of the firms expected increases in activity over the next six months, while 12 percent expected declines. The survey's future indexes indicated that respondents continued to expect growth over the next six months.

The Manufacturing Business Outlook Survey is a monthly survey of manufacturers in the Third Federal Reserve District. Participants indicate the direction of change in overall business activity and in the various measures of activity at their plants.

Federal Reserve Bank of Philadelphia is one of the 12 regional Federal Reserve Banks that, together with the Board of Governors based in Washington D.C., make up the Federal Reserve System.