FX.co ★ Philadelphia Factory Activity Stronger Than Expected

The Philadelphia Fed Manufacturing Index rose sharply to 41.4 in July 2026 from 10.3 in June, far surpassing market expectations of 13. The latest reading indicates a continued recovery in manufacturing conditions, with overall activity expanding at its fastest pace since November 2021. The current new orders index jumped 10 points to 37.0, its highest level since November 2021, while the shipments index climbed 19 points to 33.7, the strongest reading since April. The employment index inched up 2 points to 10.0, its highest since December, and the average workweek index surged 21 points to 14.0, its strongest level since January 2025. At the same time, price pressures remained evident: the prices paid index edged up to 53.9, and the prices received index increased 7 points to 27.4. Firms continued to report positive expectations for the next six months, although most forward-looking indicators eased from previously elevated levels.