The U.S. manufacturing sector continues to face significant challenges, as recent data from regional Federal Reserve banks and national industrial production indicators paint a bleak picture of America’s factories.
The Federal Reserve Bank of Philadelphia’s manufacturing index declined sharply in December, marking the lowest level in nearly two years, according to data released on Dec. 19. The index fell to -16.4, down from -5.5 in November and the lowest since April 2023. It also missed economists’ expectations for a positive reading of 3.0.
Negative values signal contraction, with the Philadelphia Fed data showing declines in both new orders (-4.3) and shipments (-1.9). Nearly 33 percent of firms surveyed reported decreases in general activity in December, up from 23 percent in the prior month….