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Manufacturing Keeps Improving in the US in October

Posted Friday, October 16, 2020 by
Skerdian Meta • 1 min read

While the economic rebound in Europe has slowed considerably and certain areas, like inflation and services, have turned negative again as coronavirus restrictions increase, the US economy is running pretty well. It is keeping pace with the rebound, and manufacturing is improving, as today’s report shows.

US Philadelphia-area manufacturing survey

October Philly Fed Manufacturing Index 32.3 points vs 14.8 expected
September Manufacturing Index was 15.0 points

Details:

New orders October +42.6 points vs +25.5 in September
Employment +12.7 points vs +15.7 in September
Prices paid +28.5 points vs +25.1 in September
Future index 62.7 points vs 56.6 in September

This is a massive beat, showing that manufacturing activity in Philadelphia has surged this month.

US October Empire State Fed Manufacturing Index

Empire Fed October Manufacturing Index was +10.5 points vs +14.0 expected
September Manufacturing Index was +17.0 points

Details:

Manufacturing index 17.0 vs. 3.7 last month
New orders index 12.3 vs. 7.1 last month
Shipments 17.8 vs. 14.1 last month
Number of employees 7.2 vs. 2.6 last month
Average workweek 16.1 vs. 6.7 last month
Unfilled orders -6.6 vs. -9.4 last month
Prices paid 27.8 vs. 25.2 last month
Prices received 5.3 vs. 6.5 last month
Inventories -14.6 vs. -3.6 last month

This is a solid report, even if the headline is a bit softer than expectations. Inventories are at their lowest since 2017, which is usually a positive sign, as they are rebuilt in the coming months, leading to higher manufacturing orders.

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