United States Philadelphia Fed Manufacturing Index

The Philadelphia Fed Manufacturing Index in the US plunged to -16.4 in December 2024, its lowest level since April 2023, from -5.5 in November and way below expectations of 3, signaling a further weakening in regional manufacturing activity. The indexes for new orders (-4.3 vs 8.7 in November) and shipments (-1.9 vs 4.1) both turned negative, reflecting softer demand. The employment index edged down but remained positive (6.6 vs 8.6), indicating continued, albeit slower, job gains. Meanwhile, the prices paid index rose to 31.2, showing elevated input costs, while the prices received index fell to 7.3, marking its third consecutive decline. Firms remained optimistic about future growth despite the pullback, with the index for future general activity at 30.7, though down from the prior month’s 36.7.