The numbers: The Philadelphia Fed said Thursday its gauge of regional manufacturing activity rose to 39 in November from 28.3 in the previous month. Any reading above zero indicates improving conditions.
Economists expected a 22.0 reading, according to a Wall Street Journal poll.
Key details: The headline index is based on a single stand-alone question about business conditions unlike the national ISM manufacturing index which is a composite based on components.
The gauge of new orders rose 16.6 points to 47.4, while the shipments index gained 2.1 points to 32.1 in November.
Unfilled orders rose 14.7 points in November to 27.4 from the previous month.
The reading of the six-month business outlook rose to 28.5 from October’s reading of 24.2.
The index of the number of employees edged lower to 27.2 from 30.7 last month, the regional bank said.
The prices-paid index rose to 80 from October’s reading of 70.3, while the prices-received index moved to 62.9 from October’s reading of 51.1.
Companies were asked to predict how much they would increase prices this year, with the median answer being 5.3%, up from 5% when the question was last asked in August. They expect employee compensation costs to rise at a median fate of 4.8% over the next four quarters, up from 4.0% in August.
The firms’ median forecast for the average inflation rate over the next 10 years was 3.5 percent, an increase from 3.0 percent in August.
Market reaction: U.S. stocks were set to move higher at the start of trade, with futures for the S&P 500
SPX,
and Dow Jones Industrial Average
DJIA,
each pointing to early morning gains.
This post was originally published on Market Watch
