(Philadelphia Fed) The diffusion index gauging current general activity in US manufacturing fell by 7 points to 23.8 in October.
40% of firms had increases in activity, compared to 34% last in September. 17% of firms posted declines in activity, an increase from 3% in September.
The current shipments index was unchanged at 30, while the gauge for new orders ticked higher by 15 points to 30.8. More than 47% of firms had increases in new orders, against 16%, which had declined.
The employment index increased from 26.3 the last month to 30.7 in October, with 65% of firms posting steady levels of job additions.
Prices remained elevated, with the prices paid increasing by 3 points to an index of 70.3. 73% of firms reported rises in input prices. The gauge of current prices received fell by 2 points to 51.1.
Manufacturing firms project a large uptick in software and non-computer equipment expenditures next year. Capital expenditures are expected to post a marginal decrease.
Firms remain optimistic over the next six months, with the future general activity index increasing by 4 points to 24.2.
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