Philadelphia’s regional manufacturing activity dropped this month from 37.8 to 20.9 with new orders slowing and the employment index softening, according to a survey announced by the National Association of Manufacturers.
The Philadelphia Fed’s index for general business activity found that 41.2 percent of companies reported activity increases while 20.3 percent reported decreases.
New order growth fell from 29.2 to 4.3. The shipments index dropped from 27.7 to 15.3, the employment index decreased 2.7 points to 9.1, and the average employee workweek fell 10.5 points to 7.5. The prices paid index fell from 48.6 to 43.2 while the prices received index increased from 31.3 to 40.1.
“As has been the case for many months, the prices received index remained lower than the prices paid index, but that gap is starting to close, indicating that manufacturers have gained increased pricing power amid stronger demand and have to absorb a smaller portion of higher costs paid,” the association said.
More than half, 52.2 percent, of companies expect higher total capital spending next year while none anticipate a decrease.
Half of the companies plan to spend more on noncomputer equipment, and 39.1 percent expect increased spending on software and computer and related hardware.