Philly Fed Manufacturing Index: Activity Continues Decline in January

This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.

The Philly Fed's Manufacturing Business Outlook Survey is a monthly report for the Third Federal Reserve District, covers eastern Pennsylvania, southern New Jersey, and Delaware. While it focuses exclusively on business in this district, this regional survey gives a reliable direction of the broader Chicago Fed's National Activity Index.

The latest manufacturing Index came in at -8.9, up 4.8 from last month's -13.7, marking the index's fifth negative reading in a row and the seventh in the last eight months. The three-month moving average came in at -12.7, down from last month. The six-month outlook came in at 4.9, up from the previous month's -0.9. Since this is a diffusion index, negative readings indicate contraction, positive ones indicate expansion.

The -8.9 headline number came in below the -11 forecast at