Philly Fed Manufacturing Index Drops to 20.9 in October, Missing Market Expectations

Manufacturing activity in the US mid-Atlantic region slowed significantly in October, though it continued to expand. The Philadelphia Fed current general activity index fell to 20.9 from 37.8 in September, falling short of economist forecasts ranging between 28.4 and 30.0. Key components saw substantial drops: new orders plunged to 4.3 from 29.2, shipments fell to 15.3 from 27.7, and the future general activity gauge fell to 33.0. Inflation measures were mixed, as prices paid eased to 43.2 while prices received climbed to 40.1.