After just barely breaking an 18-month streak of readings above +20 last month, the Philadelphia Fed Manufacturing report rebounded more than expected in July, rising from 19.9 up to 25.7 compared to consensus forecasts for a reading of 21.5. With this month’s reading, the Philly Fed reading of General Business Conditions has now been above +10 for 20 months as well as in every month since the 2016 election. The only other period since 1980 where the index was above +10 for a longer period of time was in the 21-month stretch ending in April 2005.

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In terms of the breadth of this month’s report, things were generally positive. Most components saw m/m gains with the biggest increases coming in Unfilled Orders, New Orders, and Prices Paid. The only three categories that saw declines were Number of Employees, Average Workweek, and Shipments.

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In the case of Prices Paid, that index has been soaring of late. Its current level of 62.9 is the highest monthly reading we have seen in a decade, eclipsing the prior peak from February 2011. Going all the way back to 1980, there have only been nine months where the index was higher. 

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