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Philadelphia Fed manufacturing gauge posts 1-yr peak in July

Philadelphia Fed manufacturing gauge posts 1-yr peak in July

Mubasher: The Philadelphia Federal Reserve on Thursday said that its gauge on the US Mid-Atlantic business activity climbed to its highest level since a year during July, amid the persisting trade feuds between Washington and its trading allies.

The regional Fed bank’s barometer rose to 21.8, the highest level since July 2018, compared with a reading of 0.3, which was the lowest since February.

It is worth noting that a reading above zero indicates that the region’s business activity is expanding.

The Philadelphia Fed’s data indicated a broad improvement, including gains in new orders and employment.

The sub-index for new order rose to 18.9 in July, the highest reading since the start of this year, compared with 8.3 in the previous month.

In addition, the employment gauge climbed to 30, marking the strongest level recorded since October 2017, while the average workweek index hit 23, the highest in 14 months.

The Philly Fed’s gauge for six-month business conditions jumped to 38, the highest since more than a year ago, compared with 21.4 in the preceding month.

This was the second regional Fed data this week to indicate a recovery in business conditions from a sharp downturn in June.

“The survey’s future indexes indicate that respondents continue to expect growth over the next six months,” the Fed said.

The New York Fed said its index tracing manufacturing growth recovered in July from the prior month’s lowest level seen since October 2016.