FX.co ★ Philadelphia Factory Activity Rebounds to Four-Month High

In January 2026, the Philadelphia Fed Manufacturing Index experienced a significant increase, jumping 21.4 points to reach 12.6—its highest point since September. This sharp rise follows an upward revision to December's figure of -8.8 and far surpasses market expectations of -2. The data indicates a resurgence in manufacturing activity as new orders climbed to 14.4 and shipments rose to 9.5, reflecting stronger demand and improved delivery outcomes. Conversely, inventories dropped to -8.4, the lowest level since July 2024. Employment figures stayed positive at 9.7, albeit slightly decreasing from the previous month, while the average workweek edged down to 9.1. Input prices saw a minor reduction with the prices paid index falling to 46.9, whereas the prices received index increased to 27.8, highlighting ongoing cost pressures. Looking forward, the future activity index decreased to 25.5, with projections for future new orders dropping to 32.9 and future shipments rising to 40.8. Companies remain cautiously optimistic about modest employment growth and persistent price levels over the coming six months, reflecting continued caution amid enduring price pressures.