Unlike its sibling report for the New York area earlier this week, the August release of the Philly Fed Manufacturing report increased versus July and came in better than expectations. As shown in the table to the right, the General Business conditions components increased from 5.7 up to 8.3 versus expectations for a jump to 6.8. Of the nine sub-components for the index, six increased this month while just three declined. The biggest gains on the month came from Shipments (+12.3), Number of Employees (+5.7), and Unfilled Orders (+5.3). With the increase in Number of Employees plus a jump in the Average Workweek component, employment in the area appears to be healthy. On the downside, the Prices Paid component saw the largest decline this month falling from 20.2 down to 4.2. That was the largest one-month decline for the index since March 2012.