Fourth increase in a row puts index at 16.7
By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) -- Manufacturing activity expanded for the fourth consecutive month in the Philadelphia region in November, the Federal Reserve Bank of Philadelphia reported Thursday.
The Philly Fed index improved to a seasonally adjusted 16.7 from 11.5. That's the highest reading since June 2007. During the depths of the recession, the Philly Fed index fell to as low as negative 41.3.
Economists surveyed by MarketWatch expected the index to rise to 14. See the MarketWatch consensus and weekly economic calendar.
Any reading over zero indicates more firms reported improving conditions compared with last month than reported things were getting worse. In November, 28.5% of firms said business improved, while 11.8% said business got worse.
The new orders index improved to 14.8, also the highest since June 2007. The shipments index rose to 15.7, the highest since July 2007.
The employment index increased to negative 0.5%, showing continued, but smaller job losses.
A forward-looking index dropped slightly, but showed general optimism. The six-month expectations index fell to 36.8 from 39.8. Nearly half of the firms said they expect business conditions to improve in six months.
In other reports, the Labor Department said first-time jobless claims were unchanged at 505,000, while regular continuing state claims fell to 5.61 million. Total continuing claims, including extended federal benefits, rose to 9.19 million, not seasonally adjusted. See full story on jobless claims.
The Conference Board said the index of leading indicators rose 0.3%, the seventh straight increase, a sign that the recovery was "unfolding." Growth is expected to be slow through the first half of next year, the private research group said. See full story on the leading indicators.
