Manufacturing activity in the Philadelphia area continued to expand in October, at a slower rate compared with last month amid severe shortages related to supply chain problems.
Source: Federal Reserve Bank of Philadelphia.
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The index for current general activity reported by the Federal Reserve Bank of Philadelphia dropped to 23.8 in October from 30.7 in September.
The survey polls manufacturers in the Third Federal Reserve District that comprises eastern Pennsylvania, southern New Jersey, and Delaware on the direction of change in overall business activity at their plants.
U.S. factory output expanded in the last few months amidst strong demand, but problems related to the procurement of components and raw materials are lifting a lid on production.
In October, over 40% of firms in the Philly Fed’s district posted increases in overall activity, while 17% reported declines compared with the previous month.
Demand for goods in the regional factories expanded. The new orders index expanded to 30.8 from 15.9 the previous month, while the shipments index remained widely stable at 30.0.