Philly Fed Manufacturing Index Surges To Highest Level Since March 2011

The headline index of regional business conditions unexpectedly surged to 19.8 in July from June's 12.5 reading.

Economists were expecting a drop to 8.0.

Below is a summary of the data from the release:

The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, increased from 12.5 in June to 19.8, its highest reading since March 2011 (see Chart). The percentage of firms reporting increased activity this month (37 percent) was greater than the percentage reporting decreased activity (17 percent).

Other current indicators suggest continued growth this month. The shipments index increased notably, from 4.1 in June to 14.3. The demand for manufactured goods as measured by the current new orders index remained positive, although it fell back 6 points to 10.2. Firms reported a drawdown of inventories this month: The inventory index fell 15 points, from -6.6 to -21.6.

Labor market conditions showed a notable improvement this month. The current employment index, at 7.7, registered its first positive reading in four months. The percentage of firms reporting increases in employment (18 percent) exceeded the percentage reporting decreases (10 percent). Firms also indicated an increase in the average workweek compared with June.

Below is a breakdown of the various sub-components of the index.

Read more: http://www.businessinsider.com/philly-fed-manufacturing-july-2013-7#ixzz2ZPiZy3H4