Sharp decline in September Philadelphia Fed nonmanufacturing business activity index
- the current regional activity index for the Philadelphia region fell from 39.1 last month to 9.6 in September
- Firm level business saw a decline that was a little less at 21.9 versus 37.2 last month. The level was the lowest reading since April
- the share of firms reporting increases in general activity came in at 44% which exceeded the shares reporting decreases at 22%. However the shares of firms reporting decreases nearly doubled from last month
- new orders 14.7 versus 27.4 last month
- employment 14.1 versus 8.2 last month
- wage and benefit costs 42.1 versus 43.0 last month
- sales revenue index 16.7 versus 29.0 in August
- The diffusion index for future activity at the firm level fell sharply from a reading of 65.8 in August to 39.3 this month, its lowest reading since January
The Philadelphia Fed said in summary:
Responses to this month's Nonmanufacturing Business Outlook Survey suggest some moderation in nonmanufacturing activity growth in the region. The indicators for firm-level general activity, new orders, and sales/revenues all declined but remained positive; however, the full-time employment index increased. The future activity indexes suggest that respondents expect improvement at their firms and in the region over the next six months, but readings decreased from last month.
