The Philly Fed Business Index reached a two-year high, surpassing the previous +3.2 rating. Employment showed improvement with a rating of -10.7 compared to the previous -9.6. New orders also saw an increase at +12.2, up from +5.4 in the prior period. Prices paid surged to +23.0 compared to +3.7 previously, while prices received showed a slight increase to +5.5 from +4.6.
Shipments rose to +19.1 from +11.4, and unfilled orders saw a slight decrease to +0.8 from +1.0. Delivery times improved to -9.4 from -16.7, while inventories fell to -8.9 from +4.4. Average employee workweek also saw a drop to -18.7 from -0.2 in the prior period.
Looking ahead, the six-month index showed promise at +34.3 compared to +38.6 before. Employment expectations increased to +12.8 from +5.8, while new orders and shipments showed a slight decline. Prices paid for the future period saw a significant increase to +54.5 from +38.0, while prices received also rose to +34.4 from +37.1.
The spike in prices paid is a cause for concern, raising worries about inflation. However, it may be attributed to rising oil prices rather than broader cost pressures. The increase in prices paid could be seen as a one-time event, especially when looking back at data from 2022.