The manufacturing slump in the region covered by the Federal Reserve Bank of Philadelphia continued in April, a report from the Philly Fed said Thursday.
The Philly Fed’s index of business activity fell to -31.3 in April from -23.2 in March. Readings below zero indicate contracting activity.
Economists had forecast a slight improvement to -20.
The indexes for new orders and shipments both remain negative but rose this month. The new orders index climbed 6 points to -22.7, and the shipments index climbed 18 points to -7.3.
The employment index rose 10 points to a near-zero reading, indicating that employment remained steady in April. Most firms said their payrolls neither rose nor fell in the month. Sixteen percent said payrolls grew and sixteen percent said they fell.
Inflation pressures continued to ease. The prices paid index fell for the second consecutive month, with 19 percent of manufacturers reporting higher input prices, 10 percent reporting lower input prices, and 70 percent reporting no change. The prices received index fell into negative territory for the first time since May of 2020. Seven percent of manufacturers reported raising their prices, 10 percent reported decreasing their prices, and 83 percent reported no change.
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