FX.co ★ Philadelphia Factory Growth Strongest since 2021

The Philadelphia Fed Manufacturing Index climbed to 47.4 in August 2026 from 41.4 in July, its highest reading since April 2021 and far surpassing market expectations of 25. Nearly 57% of surveyed firms reported increased activity, while only 10% noted a decline. New orders eased to 30.1 and shipments slipped to 27.7, though both indicators remained at solid levels. The employment index jumped to 27.9, its strongest level since April 2022, signaling ongoing job creation in the manufacturing sector. Price pressures eased somewhat, with the prices-paid index falling to 40.9 and the prices-received index declining to 17.7, although both measures remained elevated. Looking ahead, manufacturers turned markedly more optimistic: the future general activity index surged 39 points to 73.6, its highest level since August 1983.