Highlights
February's heavy weather didn't slow down business activity in the Philadelphia Fed's manufacturing region where the headline index came in at 17.6, well above zero to indicate month-to-month growth and above January's 15.2 level to indicate an accelerating rate of growth. New orders really accelerated this month, at 22.7 vs. January's 3.2. Shipments came in at 19.7 vs. 11.0 in January.

Inventories are a key plus in the report showing, despite the drawdown effect from the shipment activity, a month-to-month increase at 3.2 to offer an indication that the region's manufacturers are restocking to meet future production needs. The increase in inventories is the first since October 2007. The sample is adding employees, at a 7.4 reading for a third straight monthly gain. Raw material prices continue to increase, at 32.4 for the prices paid index, but manufacturers are still unable to pass the costs along as the prices received index remains very quiet at 3.7.

Today's report, together with the Empire State report posted earlier this week, point to another month of strength for ISM's national manufacturing report. Manufacturing, which has been on the upswing since mid-year last year, is accelerating and is arguably the economy's leading sector.

Market Consensus Before Announcement
The general business conditions component of the Philadelphia Fed's business outlook survey index slowed in January to 15.2 from 22.5 in December. However, the latest number is well above the zero level that would indicate no month-to-month growth. That is, January represents more moderate growth than December's index. Nonetheless, the outlook for February is not great for the mid-Atlantic region. The new orders index eased two months in a row-slipping from 13.1 in November to 8.3 in December and to 3.2 in January.

2010 Release Schedule

Released On: 1/21 2/18 3/18 4/15 5/20 6/17 7/15 8/19 9/16 10/21 11/18 12/16 Released For: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec