Philly Fed manufacturing index grows at slightly slower pace in September

The Philadelphia Fed said Thursday its gauge of business activity in its region dipped in September. The regional Fed bank’s index fell to 15 from 17.2 in August. Any reading above zero indicates improving conditions. This is the fourth straight positive reading. Economists polled by MarketWatch expected a 13 reading.

The headline index is based on a single stand alone question about business conditions unlike the national ISM manufacturing index which is a composite based on underlying data.

The components of the Philly Fed index were stronger than the headline. The barometer on new orders rose to 25.5 in September from 19 in the prior month. The shipments index surged to 36.6 in September from 9.4. Inventories moved deeper into negative territory.The measure of the six-month business outlook rose 18 points to 56.6.