Indication Of Growth Moderation In Philly Fed Report

Moderation from a high level of growth is the indication from the Philly Fed's November report, at a headline 12.9 which comes in well short of Econoday's low estimate at 18.3. Growth in new orders slowed sharply, down more than 10 points to 9.1 with unfilled orders, at minus 4.8, in outright contraction for a second straight month.

Optimism also seems to be fading, at least slightly, in Philly's sample with the 6-month outlook down 6.6 points to a still favorable 27.3. And there is an indication of easing capacity stress in the report as the workweek dropped very sharply from October's 20.8 to only 6.3.

Yet other readings are clearly positive with shipments down only 2.9 points to a still strong 21.6. Delivery times are lengthening this month in another sign of strong activity with employment easing 3.2 points but also still very solid at 16.3.

Price data are mixed with input costs rising slightly more than 1 point to a very elevated 39.3 though pass through to customers is moderating, down slightly more than 2 points to 21.9.

This report contrasts with greater strength in the Empire State report which was also released this morning. Together they offer a positive but not accelerating indication for November's factory activity.