Business Outlook Blows Away Projections
The December Philadelphia Federal Reserve Business Outlook increased from a reading of ‑10.7 in November to 8.1 this month, signalling a significant improvement in manufacturing conditions. This 18+ point jump is even more impressive considering that the expected reading was -3.0. Moreover, the demand for manufactured goods picked up as the new orders index increased 15 points. The current shipments index also improved notably, rising by 25 points. Much of the significant increases can be attributed to the economic recovery following Hurricane Sandy; however, these huge increases also paint a picture of a larger trend of a rebound in the overall U.S. economy.