The Federal Reserve Bank of Philadelphia reported Tuesday that nonmanufacturing activity continued to expand in July in the region that includes South Jersey.Firms responding to this month’s Nonmanufacturing Business Outlook Survey reported optimism about future activity over the next six months. Optimism about growth in the region also improved markedly. The future regional activity also increased to its highest level in eight months.
Broadly, results from the survey suggest continued business expansion among the region’s nonmanufacturing firms. The survey’s indicators for sales/revenues and new orders improved most notably. Overall employment grew among the reporting firms, with more firms reporting increases in part-time workers than reporting increases in full-time employees.
Firms reported improved growth in new orders and sales/revenues. Employment indexes suggest continued expansion in overall employment, especially for part-time employees.
Overall expectations for growth over the next six months showed notable improvement this month.
Results found that firms also perceived an improvement in regional economic conditions in July. The regional business activity index increased sharply and is now slightly higher than its historical average.
Based on the responses, the largest percentage of firms (57 percent) reported no change in full-time employment, the percentage of firms reporting higher employment (17 percent) was slightly larger than the percentage reporting lower employment (15 percent).
Also, firms continued to report price increases for their own products and for the prices paid for inputs. Over 29 percent of the firms reported paying higher prices for inputs, about the same as in June.
For the FED of Philadelphia’s complete report on the survey, visit its website.
