Philadelphia Fed: Regional manufacturing index for June sinks to lowest point in 10 months
By APThursday, June 17, 2010
Philly regional manufacturing growth slows in June
PHILADELPHIA — The pace of manufacturing growth in the Philadelphia region has slowed to its lowest level in 10 months, according to a survey released Thursday by the Philadelphia Federal Reserve.
The Philly Fed said its index of current activity dropped to a reading of 8.0 for June, down from 21.4 in May. It was the first drop in four months, indicating a slowdown in growth for the third federal district, which encompasses eastern Pennsylvania, southern New Jersey and Delaware.
For the first time in seven months, more firms reported a decrease in employment, 18 percent, than reported an increase, 17 percent. The largest percentage, 62 percent, reported a steady number of workers. The number of work hours reported also fell, declining for the first time in eight months.
The number of new orders increased, but shipments fell. Price increases for materials used in manufacturing slowed significantly.
Manufacturers expect growth to continue, but the percentage of firms expecting to increase hiring in the second half of the year fell to its lowest reading in four months.
