FX.co ★ Philadelphia Factory Activity Rebounds Strongly in July

The Philadelphia Fed Manufacturing Index experienced a notable rise to 15.9 in July 2025, marking its first positive reading after three months of negative figures and reaching its highest point since February. This rebound from -4.0 in June significantly surpassed market expectations of -1, indicating a robust recovery in regional manufacturing and renewed confidence in the sector's future. Key components across the board showed improvement, with the new orders index increasing by 16 points to 18.4, and the shipments index advancing 15.4 points to 23.7. The employment index also turned positive, climbing 20 points to 10.3, signaling overall employment gains. Meanwhile, inflationary pressures intensified, as reflected by the prices paid index's increase of 17 points to 58.8, and the prices received index's rise of 5 points to 34.8, reversing the declines seen last month. Prospective indicators also saw enhancement, with the future activity index inching up 3 points to 21.5, indicating that firms maintain optimism regarding growth over the next half year.