19.02.202613:38:49UTC+00Philadelphia Factory Activity Rises to Five-Month High

The Philadelphia Fed Manufacturing Index rose to 16.3 in February 2026, its highest reading since September and well above the consensus forecast of 8.5. Overall business activity and new orders remained moderately strong. However, shipments slowed sharply and came close to stalling.

Employment levels were largely stable, but the employment index slipped slightly into negative territory, and the average workweek shortened. Prices continued to increase, though both input costs and selling prices rose at a slower pace than in previous periods. Customer price sensitivity was broadly unchanged, yet about one-third of firms reported that their customers are becoming more sensitive to price.

Many firms still expect industry-wide costs to shift in the near term, and a majority anticipate that competitors will raise prices within the next three months. Over the past year, tariffs were reported to have had a predominantly negative impact, and many firms expect those negative effects to persist. While expectations for overall growth over the next six months improved, planned capital expenditures moved lower.