Like its New York counterpart, the October read on manufacturing in the Philadelphia Fed region came in slightly better than expected. While economists were forecasting the headline General Conditions index to come in at a level of 20.0 versus last month’s reading of 22.9, the actual reading of 22.2 showed only a slight decline. As it stands now, the Philly Fed has been positive for 29 straight months, which is the longest streak of growth readings since the 30-month streak ending in August 2015 and before that the 29-month streak ending in August 1998.
Breadth in this month’s report was skewed towards the positive side as five components increased m/m and just four declined. The biggest increase was in the Average Workweek followed by Shipments, while Unfilled Orders and Delivery Times saw the largest declines. Prices Paid also warrants a mention, as even though it didn’t see a large m/m decline, it remains well off of its multi-year high of 62.9 back in July (chart below).