2025.12.1813:30:00UTC+00Philadelphia Fed Manufacturing Index Plummets in December: A Closer Look at Economic Indicators

The Philadelphia Fed Manufacturing Index took a significant downturn in December 2025, reflecting a stark decrease in manufacturing activity within the United States. According to the latest updates provided on December 18, 2025, the index fell from its previous level of -1.7 in November to a much lower -10.2 this month.

This sharp decline signals a considerable weakening in the manufacturing sector's performance, raising concerns over potential economic implications. The index serves as a key economic barometer by measuring the health of the manufacturing industry in the Third Federal Reserve District, which includes eastern Pennsylvania, southern New Jersey, and Delaware. A negative reading indicates that more manufacturers are reporting a decrease in activity.

Economists and policymakers are likely to scrutinize these numbers closely as they assess the broader economic landscape heading into 2026, particularly looking for deeper underlying factors contributing to this downturn and strategies to curb any potential adverse effects. The significant drop underscores the challenges the sector faces amidst global economic headwinds and domestic pressures.