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Manufacturing business activity opened 2022 with modest growth, after closing the previous year with a steep decline.
Source: Federal Reserve Bank of Philadelphia
The diffusion index for current general activity stood at 23.2 in January, up eight points after declining by 24 points in December. Nearly a third of firms polled recorded growth in activity for the month.
Current shipments grew by six points to 20.8, with nearly 40% of firms reporting an increase while 19% indicated a decrease. New orders rose four points to 17.9 after declining by 34 points in December, with 36% of firms recording growth.
The employment index fell to 26.1 from 33.9 in December, with the average workweek index down to 9.6 from 30.4 or its lowest level in 16 months since September 2020. The prices paid index fell six points to 72.5.
The future general activity index rose to 28.7 from 19.0, with over 44% of firms expecting an increase in future activity, 16% expect a decline, while 39% expect no changes. The future employment index fell, while the future prices paid index climbed.
The latest figures indicate an expansion in regional manufacturing and expect overall growth in the next six months.
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