The Philadelphia Fed Manufacturing Index fell to 20.9 in October 2026 from 37.8 in September, well below market expectations of 28.4. The latest reading indicated the slowest expansion in manufacturing activity since June. New orders and shipments declined but remained in expansionary territory, while the employment index edged down but continued to signal overall job growth. The prices paid index decreased, while the prices received index rose, although both continued to indicate overall price increases. Looking ahead, firms remained optimistic about the next six months, with 51.4% expecting general business activity to increase. However, most future indicators declined.