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Bank Releases July’s Leading Indexes
For immediate release
Contact: Marilyn Wimp, Manager of Media Relations, (215) 574-4197
The Federal Reserve Bank of Philadelphia today released the leading indexes for the 50 states for July 2011. The leading indexes are a six-month forecast of the state coincident indexes, which reflect current economic activity in each state.
- Thirty-three state coincident indexes are projected to grow over the next six months, while 17 are projected to decrease.
Third District Leading Indexes
- Pennsylvania: The leading index for Pennsylvania was 0.0 in July. The state experienced a negative growth rate in its coincident index — which reflects negative current economic activity — and decreases in building permits and the index of delivery times from the Institute for Supply Management’s manufacturing survey. Additionally, initial unemployment claims decreased. Pennsylvania’s leading index for July suggests stagnation in the state’s economy into the first quarter of 2012.
- New Jersey: The leading index for New Jersey was 1.7 in July. Initial unemployment claims fell, and the state experienced an increase in its coincident index. However, both building permits and the index of delivery times from the Institute for Supply Management’s manufacturing survey decreased. Overall, New Jersey’s leading index for July suggests expansion in the state’s economy into the first quarter of 2012.
- Delaware: The leading index for Delaware was -0.3 in July. Decreases in the state’s coincident index, building permits, and the index of delivery times from the Institute for Supply Management’s manufacturing survey kept the leading index negative. Furthermore, initial unemployment claims rose. Delaware’s leading index for July suggests contraction in the state’s economy into the first quarter of 2012.
About the Leading Indexes
- The leading index for each state predicts the six-month growth rate of the state’s coincident index.
- The models include the state’s related coincident index and variables that lead the economy: state-level housing permits (1 to 4 units), state initial unemployment insurance claims, delivery times from the Institute for Supply Management (ISM) manufacturing survey, and the interest rate spread between the 10-year Treasury bond and the three-month Treasury bill.
The Federal Reserve Bank of Philadelphia helps formulate and implement monetary policy, supervises banks and bank and savings and loan holding companies, and provides financial services to depository institutions and the federal government. It is one of the 12 regional Reserve Banks that, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. The Philadelphia Federal Reserve Bank serves eastern Pennsylvania, southern New Jersey, and Delaware.