The US Philadelphia Fed Manufacturing index declined slightly to 18.9 for August from 19.5 the previous month and it has been in positive territory for 13 months. Although slightly above consensus forecasts of 18.5, this was the lowest reading for 8 months.
New orders strengthened sharply to 20.4 from 2.1 the previous month and there was a small increase in the unfilled orders index to 7.9 from 7.2.
The shipments component also strengthened sharply to 29.4 from 12.2 in July.
Delivery times continued to increase slowly while inventories declined for the month.
Employment continued to increase for the month with the index little changed at 10.1 from 10.9 previously while there was a strong increase in the workweek which will sustain confidence in the labour market.
The prices paid index strengthened to 21.1 from 19.1 and the prices received index also increased to 13.5 from 9.0.
The six-month outlook index strengthened to 42.3 from 36.9 previously and there was a notable increase in expectations of prices received.
The data overall suggests that confidence in the manufacturing sector remains firm and the underlying components were more impressive than the headline reading with suggestions that manufacturing growth is strengthening. There is also evidence that inflation pressures are gradually increasing.
US Philadelphia Fed Manufacturing index