Manufacturing activity in the mid-Atlantic region tumbled unexpectedly in February, adding to recession concerns.
Goods producers reported a spike in input costs for the first time in 10 months, despite a slowdown in company price increases—a sign that margin pressures were worsening.
The Philadelphia Federal Reserve’s manufacturing index for February fell to -24.3 this month from -8.9 in January, after many economists expected a third straight month of improvements.
An index below zero suggests manufacturing activity contracted for the month, while economists polled by Reuters had earlier projected a -7.4 median reading for February.
This is the sixth consecutive negative reading and the lowest since May 2020, and before that, April 2009 during the Great Recession….