The Philadelphia Fed’s gauge of the manufacturing sector unexpected surged higher in October, soaring beyond typical prepandemic levels.
The Philly Fed’s manufacturing index jumped to 32.3 in October from 15 in September. Economists had expected the index to slide to 13.5.
The Philly Fed said the results indicate “widespread optimism” about the next six months.
This is not just the highest reading since the pandemic, it is one of the highest readings of the entire Trump administration and far above the historical average for the index.
The index, which is compiled each month by the Federal Reserve Bank of Philadelphia from surveys of manufacturers in the region, has only exceeded 30 eight times between 2010 and now. Six of those were in three years of the Trump administration prior to the pandemic, a reflection of the Trump administration’s policies that strengthened manufacturing in the U.S.
This was the fifth consecutive