The business environment in the US region of Philadelphia deteriorated dramatically in February. In Philadelphia, the Federal Reserve’s Industrial Regional Bank (BillyFed Index) index fell 7.2 points to 16.0. Economists expected an average of 20.0 points. However, the U.S. real estate sector was weak earlier this year.
The number of new construction start-ups has dropped significantly, while permits for future construction have risen slightly. According to the Department of Commerce in Washington, housing start-ups fell 4.1 percent from December to January. Analysts expected a decline, but only minus 0.4 percent on average.
The number of building permits rose 0.7 percent. Due to the strong increase in the previous month, analysts expected a significant decline of 7.2 percent. Building permits will be issued before construction begins. They give an indication of the expected construction activities.
The Philippine Index measures economic activity in the Philadelphia area. A reading above zero indicates an increase in economic activity, while a reading below zero indicates a decline. The indicator currently indicates economic growth.
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