Outlook is improving for the Manufacturing Sector

In March, the National Association of Realtors reported that the number of homes for sale increased for the third consecutive month, reaching 1.11 million compared to 1.06 million in February. Despite this rise in inventory, home sales fell by 4.3% from the previous month. The housing market continues to be hindered by high mortgage rates, with the average rate for a 30-year mortgage nearing 7%. Homeowners are hesitant to sell their homes due to the mortgages they secured when rates were lower. While the number of homes for sale is up 14% from a year ago, it is still below the pre-pandemic average of 1.7 million homes on the market.

In the Philadelphia area, manufacturing activity has been on the rise, with the Philadelphia Federal Reserve’s Manufacturing Business Outlook Index reaching 15.5 in April. This positive reading is the highest since April 2022 and marks the third consecutive month of growth. A significant portion of firms reported an increase in activity, with new orders and shipments also rising in April. Additionally, there were indications of price increases, as reflected in the prices paid index reaching its highest reading since December. Twenty-six percent of firms reported paying higher prices, while 12% raised the prices of their goods.