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The Philadelphia Federal Index (or Philly Fed Survey) is a regional federal-reserve-bank index measuring changes in business growth. It is also known as the "Business Outlook Survey."
The survey is a measure of regional manufacturing growth. When the index is above zero, it indicates factory-sector growth, and when below zero, it indicates contraction. The intention of the survey is to provide a snapshot of current manufacturing activity in this region, as well as provide a short term forecast of manufacturing conditions in the area, which may provide an indication of conditions throughout the United States. Share today's term with your network:
 Image courtesy Getty Images/yoh4nn Why is 'Philadelphia Federal Index' Today's Term? The Philadelphia Federal Index, otherwise known as the Philly Fed Survey, is a survey of around 250 manufacturing businesses in the Philadelphia Federal Reserve district. Also called the Business Outlook Survey, the Philly Fed manufacturing index is released monthly on the third Thursday of every month and is a leading indicator of economic conditions in the region, which also has important implications for the rest of the U.S. February's survey results are scheduled to be released this morning.
Any score above 0.0 on the index indicates manufacturing growth, while a score below 0.0 indicates contraction. As expectations rise of an economic and manufacturing recovery in the U.S., the index has rebounded back up to more typical levels of growth and expansion. As shown on the graph below of the past two years, severe manufacturing contractions occurred in March, April, and May of last year, which were clearly due to the onset of the pandemic's economic consequences. Since June 2020, though, manufacturing activity has been consistently positive as optimism for a recovery has continued to grow. Consensus forecasts for February's data to be released today are around 20.3 after January's significantly better-than-expected 26.5.
-James  Chart courtesy Fair Economy RELATED READING More on Philadelphia Federal Index
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The Geezer'$ Alert ...
Thursday, February 18, 2021
What is the Philadelphia Federal Index?
