Federal Reserve Bank of Philadelphia (10/15/15)

Manufacturing conditions in the Philadelphia region continued to weaken in October, according to the Federal Reserve Bank of Philadelphia. The diffusion index for current activity remained negative for the second consecutive month, although it edged slightly higher from -6.0 in September to -4.5. The indexes for current new orders and shipments showed notable deterioration this month, with both indexes falling below zero, marking the first negative reading for the new orders index since May 2013.

The survey’s indicators for labor market conditions suggest slightly weaker employment. The percentage of firms reporting declines in employment (15%) was slightly greater than the percentage reporting increases (13%). The employment index declined nearly 12 points, from 10.2 to -1.7. Firms also reported overall declines in average work hours in October, and the workweek index was negative for the first time since May.