MW: Philly Fed outshines Empire State manufacturing index in September
WASHINGTON (MarketWatch)—Two regional manufacturing gauges both improved in September, but the Philadelphia region showed moderate growth while the New York region remained mired in contraction.
The Empire State manufacturing index, which measures conditions in the New York area, held in contraction territory, inching up to negative 2 in September from negative 4.2 in August. Economists had been expecting a reading of negative 0.5.
At the other end of the New Jersey Turnpike, however, the Philadelphia Fed’s manufacturing index slowed to a reading of 12.8 in September, well below the 2 in August. This was higher than economists’ expectations for a 0.8 reading.
Readings over zero on both gauges indicate improving conditions.
The Empire State index and the Philadelphia Fed reports are the first of a wave of regional manufacturing reports, providing clues for the national Institute for Supply Management’s manufacturing index.
The ISM factory index fell to 49.4% in August from 52.6% in the prior month, another sign of the difficulties in the factory sector. Any reading below 50% indicates contraction, and the index was below that level for the first time since February.
