The Philadelphia Fed Index (also known as the Philadelphia Fed Index or the Manufacturing Business Outlook Survey ) is published monthly by the Philadelphia Fed A report from the Federal Reserve Bank of Philadelphia .
Companies surveyed indicated the direction of change in various indicators of their overall business activities and their factories.
When the index is above zero , the index signal expands; when it is below zero , contracts.
The index is considered a good indicator of changes in everything from employment to overall prices to manufacturing conditions.
The survey was released three weeks into the month and includes data from last month.
For example, a report for June will contain data for May.
What is the Philadelphia Fed Index?
This report is based on a survey of questions raised by employees and owners involved in the manufacturing industry in Philadelphia , New Jersey , and Delaware .
Participants were asked about overall changes in business activity during the month.
Depending on the survey, the report generates a number, either negative or positive.
A number below zero indicates manufacturing is contracting, while a number above zero indicates business is expanding.
The report also provides a comparison of the current month to the previous month, as well as a six-month overview of past reports.
The expansion or contraction of the manufacturing industry can serve as a leading indicator of a country's overall economic behavior.
While this is a regional report, traders consider it a good forecast for the Purchasing Managers Index (PMI) information due out in a few days, covering the entire United States