Your Economy (No Politics)

[Bullwinkle]

April Philly Fed index up less than expected to 13.2 -
Thursday, April 20, 2006 5:22:51 PM
http://www.afxpress.com


WASHINGTON (AFX) -- Industrial activity in the Philadelphia region expanded at a modestly faster pace in April, the Federal Reserve Bank of Philadelphia said Thursday

The Philly Fed business-activity index rose to 13.2 in April from 12.3 in March. The increase was smaller than expected. Economists expected the index to rise to 14.6, according to a survey conducted by MarketWatch. But economists said the increase shows a healthy manufacturing sector

"This report remains consistent with solid expansion in the manufacturing sector in early April and continued, elevated price pressures from the sector," said economists at Bear Stearns

Readings over zero indicate growth

The survey found that 25% of the firms reported increases in activity, while 12% reported declines

The new-orders index fell to 12.2 from 20.8. Shipments fell to 19 from 24.3

For the first time in six months, inventories declined, falling to minus 8.8 in April from 11.1 in March

Delivery times also fell in April

Inflation pressure increased. Prices paid rose to 29 from 17.2. The prices-received index held steady at 15.4

Employment improved in April. The employee index rose sharply to 21.7 from 5.4, the highest level since September 2004. The workweek rose to 9.3 from 6.3 in March

The region's manufacturing executives were somewhat more optimistic about future growth this month than in recent months

The future general activity index increased to 28.2 in April from 14.6 in the previous month

"The relatively moderate figures for current conditions should be weighed to some degree against robust expectations for the six-month outlook," said Stephen Stanley, chief economist at RBS Greenwich Capital. In answers to a special survey question, manufacturers said that underlying demand for their goods had increased only modestly over the past three months

In a separate report, the Labor Department said jobless claims fell 10,000 in the latest week. In addition, the Conference Board said the index of leading economic indicators fell for the second straight month in March

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