The Philadelphia region's services sector “continued to expand” even as the general business conditions index slipped to 37.4 in September from 41.7 in August, according to the Federal Reserve Bank of Philadelphia’s non-manufacturing Report on Business released on Tuesday.
IFR Markets had expected a reading of 33.0 for the index in September.
At the company level, the general business activity index rose to 46.8 from 41.1.
IFR Markets had also expected a reading of 33.0 for this index as well.
“More than 50% of the firms reported increases in activity, compared with 4% that reported decreases,” the Philadelphia Fed said.
The prices paid index was 26.3, down from 27.4 last month, while prices received decreased to 24.3 from 26.9.
New orders index fell to 26.7 from 29.0, sales or revenues rose to 42.8 from 40.5, the unfilled orders index increased to 9.3 from 6.9 and the inventories index rose to 13.9 from 9.5.
“The survey’s labor market indicators remained strong in September,” the Fed said. The full-time employment index increased to 36.7 in September from 32.2 in August, the third straight month the index has hit an all-time high.
“Although most firms (51%) continue to report steady full-time employment levels, the share of firms reporting increases (43%) was considerably higher than the share reporting decreases (6%),” the Fed said.
The part-time employment index slipped to 21.1 from 21.7, while the wages and benefits indicator edged up to 48.1 from 46.4. The average workweek index jumped to 25.1 from 16.4, with only 1% of the firms reporting decreases in their average employee workweek.
The six months from now regional general business conditions index decreased to 45.6 from 46.2, while the company general business conditions index rose to 53.6 from 50.7.
The Federal Reserve Bank of Philadelphia serves the Third Federal Reserve District, which consists of eastern Pennsylvania, southern New Jersey, and Delaware.
