Philadelphia Fed’s manufacturing gauge stuck in negative territory for 11th straight month

Key details: The barometer on new orders fell 4.9 points to negative 15.9 in July. The shipments index fell 22.4 points to negative 12.5.

The prices-received index jumped to 23 in July — the highest level since January — from near zero in the previous month.

One bright spot was that the measure of the six-month business outlook rose to 29.1 in July, the highest reading since August 2021.

Big picture: The Philadelphia Fed index is one of the first regional manufacturing gauges that offer timely reads of the sector.

The Philadelphia index is showing slightly better results than the recent trend. It had averaged negative 15.5 over the last 10 months.

Earlier this week, the Empire State index showed manufacturing holding steady at low levels in New York State. The general business-conditions index fell 5.5 points to 1.1 in July.

The ISM factory index contracted in June for the eighth straight month, falling to 46% from 46.9% in the previous month.

What are they saying? “The big picture here is that manufacturing is still struggling under the weight of higher rates and tighter credit conditions and has seen no benefit from the weak recovery in China,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Market reaction: Stocks
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