The Philadelphia Fed Manufacturing Index climbed to 41.4 in July 2026 from 10.3 in June, largely beating market expectations of 13. The latest data pointed to a continued recovery in business conditions, with activity expanding at the fastest pace since November 2021. The index for current new orders increased 10 points to 37.0, also its highest reading since November 2021. The current shipments index rose 19 points to 33.7; its highest reading since April. The employment index edged up 2 points to 10.0 in July, its highest reading since December. The average workweek index rose 21 points to 14.0, its highest reading since January 2025. Both price indicators continued to signal overall price increases. The prices paid index edged up to 53.9, while the prices received index jumped 7 points to 27.4.