Philly Fed: Higher But Orders Still Falling

Bottom Line: The Philadelphia Fed's index of manufacturing activity rose, coming in better than expected and much better than the New York Fed's survey. Shipments were stronger as manufacturers worked off backlogs. However, the report continued to suggest weakness going forward as new orders fell and inventories rose. Managers' expectations for future activity fell with future unfilled orders dropping sharply. Overall, while activity is holding up in some regions as manufacturers work off backlogs, most indications suggest a sharp slowdown is coming (if we haven't seen it already, like the New York Fed survey suggested).The Philadelphia Fed Manufacturing Index ROSE 18.5 points to 6.2, ABOVE the 3-Month average of -3.13, BELOW the 6-Month average of 6.37 but -13.2 BELOW the year-ago level.  On an ISM-weighted basis the index ROSE 12.4 points to 10.1, ABOVE the 3-Month average of 4.57, BELOW the 6-Month average of 14.77 but -10.1 BELOW the year-ago level.