The Philadelphia Federal Reserve’s manufacturing outlook rocketed past expectations.
The index came in at 23.6 for the month. Economists expected the measure of mid-Atlantic manufacturing activity to slide slightly in January to 15.8.
The December reading, which had jumped from 7.6 in November, was revised down slightly to 19.7.
It appears the enthusiasm has still not cooled off.
“Forty percent of the firms reported increases in activity this month; 17 percent reported decreases,” said the release from the Philly Fed. “The general activity index has remained positive for six consecutive months, and the activity index reading was the highest since November 2014.
Additionally, the report indicated that firms in the area are starting to see a serious uptick in price inputs, thus inflation is rising.
“On the cost side, nearly 35 percent of the firms reported increases in the prices paid for inputs; only 2 percent reported paying lower prices,” said the release. “The prices paid index edged 4 points higher and has now increased nearly 24 points in the past three months.”