There are many financial indexes in the US that the attentive forex broker or trader will review in order to get a good perspective on how the US dollar’s position might change. One such index is the Philadelphia Fed Index.
Commonly called the Philadelphia Fed Index or the Business Outlook Survey, the Philadelphia Federal Index is a monthly report published by the Federal Reserve Bank of Philadelphia.
This report aids those involved with FX trading by covering how much expansion or contraction has occurred within the manufacturing industry. This industry is a major part of the nation’s economy, so changes in it can have significant effects on market prices and subsequently on forex trading trends.
The Philadelphia Fed Index is a survey-based report. A series of questions is administered to participating owners and employees in manufacturing industries in various sectors across Delaware, New Jersey, and Philadelphia. The survey covers overall changes in business activities for the month.
A positive or negative number is generated based on answers to the questions; a number below zero signifies contraction in the manufacturing sector, and a number above zero signifies expansion. Current and previous months are also compared by the report, and an overview of the last six months is offered.

Forex Trading Importance

Forex brokers and traders use the Philadelphia Fed Index as an indicator of the health of the manufacturing industry. Even though this report is regional, it is considered to be good at predicting the content of the Ivey Purchasing Managers Index, a reflection of similar data taken throughout the country. In essence, it can serve as a good smaller sample that may reflect the overall comprehensive findings of the state of businesses around the country.

Philadelphia Fed Index Source

The report is published by the Federal Reserve Bank of Philadelphia.

Philadelphia Fed Index Availability

Philadelphia Fed Index Frequency

The Philadelphia Federal Reserve releases the report on the third Thursday of every month. It is the earliest regional report that is made available to investors and thus a useful tool in FX trading.