Inflation Near Record in Biden’s Backyard
Price increases remain widespread in the U.S. mid-Atlantic region, a survey conducted by the Federal Reserve Bank of Philadelphia showed on Thursday.
The Philadelphia Fed said that manufacturers continued to raise prices on products and faced higher prices on materials in September, although this impact had somewhat narrowed from the multi-decade highs hit in August. The easing of inflationary pressures was accompanied by a drop in demand for the goods produced by manufacturers.
The share of manufacturers reporting charging higher prices for products fell to 54.8 percent from 56.4 percent and the share reporting lowering prices also declined to 1.8 percent from 2.5 percent. The share reporting no change in prices rose to 41.6 percent from 39.5 percent. The diffusion index for prices received by manufacturers fell one point to 52.9.
The August figure was the highest reading since 1974. Apart from the prior month, the September reading is the highest since 1980.
The data come from the Philadelphia Fed’s monthly survey of manufacturers. It covers businesses in the Third Federal Reserve District, which covers eastern Pennsylvania, southern New Jersey, and Delaware.
WASHINGTON, DC – JULY 11: President Joe Biden spent the weekend in Delaware. (Photo by Tasos Katopodis/Getty Images)
The share of manufacturers reporting paying higher prices for materials and components declined by half a percentage point to 71.3 percent, while the share reporting lower prices rose to four percent from 2.6 percent in August. The diffusion index fell to 67.3 from 71.2.
Expected price increases eased slightly but remain elevated. The index for prices paid six months from now fell 1.1 points to 53.5 percent. Expectations for prices received dropped to 62.2 from 70.1, driven down by a big decline in the share expecting they will be raising prices.
The overall business environment rebounded much more strongly than expected in September. The general business activity index fell sharply in July from 30.7 to 21.9 and declined further in August to 19.4. Economists expected it to tick down further to 19.2. Instead, the index jumped to 30.7.
But demand growth appears to have slackened. The index for new orders fell 7 points to a reading of 15.9. Nearly 31 percent of the firms reported increases in new orders this month, a decline from 34.4 percent in July. Fifteen percent reported decreases, up from 11.6 percent in the prior month.
The current shipments index rose 11 points, to 29.9 in September. More than 34 percent of the firms reported increases in shipments this month, while only 4 percent reported decreases.
Manufacturers continued to report increases in employment, but the employment index declined from 32.6 in August to 26.3 this month. Sixty-two percent of responding businesses reported no change in employment levels, 31 percent reported increases, and just five percent reported declines.
Businesses overwhelmingly say production is being held back by supply chain issues and labor shortages. Eighty-seven point two percent of manufacturers said they were hampered by supply chain issues and 74.4 percent said labor issues were a problem. Just 15.4 percent said they were being held back by pandemic precautionary measures.
Survey: Majority of Americans Say America Headed on the ‘Wrong Track’
Most Americans believe the United States, under President Biden’s leadership, is headed on the “wrong track,” a Monmouth University survey released Thursday found.
The survey asked respondents if they believe “things in the country” are going in the right direction or headed off on the “wrong track.”
Overwhelmingly, Americans believe the U.S. is headed on the wrong track by a 36-point margin. Overall, 65 percent say the country is on the “wrong track,” while 29 percent say it is headed in the “right direction. That reflects a significant change from the findings in July, when 56 percent said the U.S. was headed on the “wrong track” and 38 percent said it was moving in the “right direction.”
The survey also found Biden’s approval rating dropping eight points since April, falling from 54 percent to 46 percent. His disapproval has risen in the same time frame, going from 41 percent to 46 percent.
The survey, taken September 9-13, 2021, among 802 U.S. adults, has a margin of error of +/- 3.5 percent.
It follows Biden’s botched withdrawal from Afghanistan, which resulted in the death of 13 U.S. service members as the U.S. rushed to abide by the Taliban-approved timeline for withdrawal. The survey found respondents virtually split on the issue, as 49 percent thought Biden “did the best he could,” while 48 percent said he “mishandled the withdrawal.”
It also comes as Biden ramps up divisive rhetoric against unvaccinated Americans, vowing to use his “power as president” to get Republican governors opposing his agenda “out of the way.”
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