FX.co ★ Philadelphia Factory Activity Contracts Sharply in October

The Philadelphia Fed Manufacturing Index experienced a significant decline in October 2025, reaching a six-month low of -12.8. This drop was a substantial decrease from September's reading of 23.2 and was significantly below the market's forecast of 10. This suggests a marked slowdown in manufacturing activity within the Philadelphia region. Although shipments decreased by 20 points, they remained in positive territory at 6.0. New orders saw an improvement, climbing 6 points to 18.2. Employment slightly decreased by 1 point to 4.6, reflecting continued job growth, whereas the average workweek shrank to 12.8 from 14.9. Both price indexes saw moderation yet stayed elevated, with the prices paid index increasing by 3 points to 49.2, and the prices received index rising by 8 points to 26.8, following previous declines. Despite the weak current indicators, the survey’s forward-looking indexes suggest widespread optimism for growth over the forthcoming six months.