Indicates a rapid recovery in the business climate
The business climate in the Philadelphia region brightened unexpectedly in January. The indicator of the regional central bank (Philly Fed index) rose from 9.1 points in the previous month to 26.5 points, as the regional central bank announced on Thursday in Philadelphia. Economists had only expected an increase to 11.8 points on average.
This enabled the business climate to recover strongly after it had suffered a significant setback in December due to the high number of new infections in the corona pandemic. Recently, the increase in new infections in the USA has not continued.
The Philly Fed Index measures economic activity in the Philadelphia area. A value above zero indicates an increase in economic activity, a value below zero indicates a decline.
