Some good economic news:
Philadelphia-area manufacturers say business conditions improved in September and raw material cost pressures seem to be retreating, according to a widely followed monthly survey released today by the Federal Reserve Bank of Philadelphia.
The survey's broadest measure of activity broke into positive territory for the first time in nine months, rising to 3.8, from -12.7 in August. A negative reading indicates a contraction of the manufacturing sector.
The survey's new-orders index rose to 5.6 from -11.9 in August, which indicated that orders then were shrinking.
The employment index was relatively flat at -0.9 this month - that is, about the same number of companies said they were adding employment as those who said they were cutting payrolls.
"It was surprising that all the big indicators that moved in the same direction. Employment was the only one that didn't," said Mike Trebing, senior analyst with the Philadelphia Fed.
The outlook for manufacturing conditions in six months also improved, to a reading of 30.8 in September from 27.6 in August. Substantially more companies said they would hire employees in six months than those that said they were likely to cut them.
The survey was taken before this week's U.S. bailout of the huge insurer American International Group Inc. Some experts fear that the nationwide credit crisis in financial institutions could leak into the broader economy and lead to a recession.
Separately today, the Conference Board said its monthly forecast of future economic activity declined 0.5 percent in August. That is more than the 0.2 percent decline expected by Wall Street economists surveyed by Thomson/IFR.
A third economic report today showed that new applications for unemployment benefits rose last week due to Hurricane Gustav. The Labor Department said initial jobless claims rose to a seasonally adjusted 455,000, up 10,000 from the prior week. Analysts had expected claims to fall slightly to 440,000.
This article contains information from the Associated Press.
