FX.co ★ Philadelphia Fed Manufacturing Activity Slows More than Expected

The Philadelphia Fed Manufacturing Index dropped to 20.9 in October 2026 from 37.8 in September, coming in well below market expectations of 28.4. This reading signaled the slowest pace of manufacturing expansion since June. The new orders index fell sharply, down 25 points to 4.3, while the shipments index declined 12 points to 15.3; however, both measures remained in expansionary territory. The employment index edged down 3 points to 9.1 but continued to indicate overall job growth. On the price front, the prices paid index decreased 5 points to 43.2, whereas the prices received index climbed 9 points to 40.1, its highest level since May 2025. Both price indices continued to point to rising prices. Looking ahead, firms stayed optimistic about the next six months, with 51.4% expecting an improvement in general business conditions, although most forward-looking indicators weakened.