Philadelphia, PA, August 19--The pace of manufacturing activity slowed in the US mid-Atlantic region in August, the Federal Reserve Bank of Philadelphia reported.
The bank's index of current activity in most of Pennsylvania and southern New Jersey, based on a business survey, dropped by more than expected to 28.5 points in August after it had surged to 36.1 in July. Any reading above zero indicates growth. It was the 15th consecutive month of growth.
"Activity in the region's manufacturing sector continues to expand ... Most of the survey's broad indicators of activity, however, suggest a more moderate pace of growth than in July," the report said. "Indicators for new orders, shipments, and employment remained positive but fell from their readings in July."
Among key findings:
-- The index of new orders plummeted 16.1 points to 19.2, its lowest reading in three months.
-- The shipments index dropped 9.3 points to 32.0.
-- The prices paid index rose 7.4 points to 53.7, a sign that input prices were rising at a higher clip.
-- An index of employee numbers declined 7.4 points to 17.2, indicating a cooler hiring environment.
-- A diffusion index of business expectations for activity in six months climbed sharply by 16 points to 52.7, suggesting stronger growth.
"Survey responses suggest upward pressure on costs as well as on the prices of manufactured goods," the report said.
"Despite evidence of moderation in the pace of growth this month, manufacturing executives expressed increased optimism about growth over the next six months," it added.
