Philly Fed: Surprising Hints of Brightness

Bottom Line: The Philadelphia Fed's index of manufacturing activity rose for the first month in five in January, coming in better than expected. Moreover, there were positive revisions to earlier data. On an ISM-weighted basis, the index edged ever so slightly out of contraction territory. The "future activity index" broke above zero for the first time in eight months. Overall, the Philadelphia Fed survey offers hope that manufacturing activity is stabilizing, painting a much more positive outlook than the abysmal survey we saw from the New York Fed earlier this week.The Philadelphia Fed Manufacturing Index ROSE 4.8 points to -8.9, ABOVE the 3-Month average of -12.7, BELOW the 6-Month average of -7.7 but -29.7 BELOW the year-ago level.  On an ISM-weighted basis, the index ROSE 9.4 points to 0.9, ABOVE the 3-Month average of -3.57, ABOVE the 6-Month average of -0.1 but -18.9 BELOW the year-ago level.