Economy

Economic Data Roundup (12/21/2017)

12/21/17 12:00 PM

iStock-465055366-1.jpgManufacturing activity in the Mid-Atlantic region of the country expanded at a faster pace this month, according to a new report from the Federal Reserve Bank of Philadelphia (FRBP). Specifically, the general business conditions index rose from +22.7 to +26.2 in December, much better than anticipated. Under the hood, current measures of new orders, shipments, and profit margins improved this month, but gauges of total employment and hours worked deteriorated.

1564yy35454.png 54453ty45y3t45.png

Forward-looking indicators (six months ahead) were a bit more mixed in December, but reported plans to make capital expenditures increased, which is supportive of faster GDP growth. Managers in this month’s survey were also asked a few special questions about their expectations for various input and labor costs in the coming year. Respondents on average forecast a 7.1 percent jump in the cost of worker healthcare benefits in 2018, along with a 2.7 percent rise in employee compensation. For all categories of expenses, surveyed managers, on balance, see increases greater than what was experienced in 2017.

 


 

Sources: Econoday, FRBP

Post author: Charles Couch