2025.12.1813:50:19UTC+00Philadelphia Factory Activity Continues to Contract

The Philadelphia Fed Manufacturing Index registered a decline of 8.5 points, reaching -10.2 in December 2025, compared to -1.7 in November, and falling short of market predictions of -3.1. This marks the third month in a row that the index has been in negative territory, highlighting persistent challenges in the regional manufacturing sector. However, new orders saw a 14-point rebound to 5, reversing the previous month’s contraction, while shipments increased by 12 points to 3.2. Employment figures remained robust, with the employment index rising to 12.9, the highest reading since May 2025, as more firms reported gains than declines. Additionally, the average workweek grew by 11 points to 14.7. The prices paid index fell by 13 points to 43.6, its lowest level in half a year, whereas the prices received index increased by 7 points to 24.3, nearly counterbalancing last month's decline. Looking ahead, the future activity index declined by 8 points to 41.6, marking the first decrease since June. Moreover, future new orders decreased to 44.0, and future shipments dropped to 43.2. Future price indexes saw a slight easing, though they remain elevated.