FX.co ★ Philadelphia Factory Activity Contracts Less than Expected

The Philadelphia Fed Manufacturing Index increased by 11 points to reach -1.7 in November 2025, surpassing the market forecast of -3.1, though it remained in the negative territory. Despite the improvement, demand weakened: new orders dropped drastically by 27 points to -8.6, the lowest level since April, while shipments fell by 15 points to -8.7, the first negative figure since May. Employment showed modest growth, with the employment index rising to 6.0, as more firms reported increases than decreases. The average workweek softened to 3.7. Price pressures continued to be significant, with the prices paid index climbing to a high of 56.1. Meanwhile, the index for prices received dipped by 9 points to 17.7 but still remained above the long-term average. Future outlooks showed significant improvement. The future activity index surged to a one-year high of 49.6, with future new orders at 55.6 and shipments remaining steady at 48.4. Firms also anticipate sustained high future prices and a slight increase in capital expenditures.