Posted on Thu, Nov. 19, 2009
The manufacturing sector in the Philadelphia region continued its healing process in November as business conditions improved for the fourth consecutive month and hiring plans appear to have stabilized, the Philadelphia Federal Reserve Bank said today in its monthly Business Outlook Survey.
The broadest measure of manufacturing activity rose to 16.7 this month from 11.5 in October, the Philly Fed reported. A zero reading indicates no growth in manufacturing, and a negative reading indicates a contraction or recession.
The current employment index rose to about zero in November from minus 6.8 in October, meaning that employment growth is flat.
Most measures in the survey improved, although some remained in negative territory, indicating continuing concerns.
Factory capacity utilization remains an issue.
About three of every five companies responding to the survey said their factories were operating at less than 70 percent of capacity. That compares with 8 percent of respondents who said factories operated at that low rate before the recession. Higher capacity rates lead to higher profits and employment.
The survey covers manufacturers in the eastern two-thirds of Pennsylvania, the southern half of New Jersey, and all of Delaware.
PHILLY.COM INDICES WATCH
MOST POPULAR PHILLY.COM PHOTOS
Philly.com Promotions
