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Investopedia explains 'Philadelphia Fed Survey'
The survey gives investors a detailed look at how busy the manufacturing sector is, and can have a significant effect on the markets. Since manufacturing is a major sector of the U.S. economy, an increase in the index can indicate an uptrend in the economy.
Investors use data from the Philadelphia Fed Survey to provide insight on equity markets, the prices of which are affected positively by increased corporate profits. On the other hand, as the economy heats up, inflation will be expected to increase, so bond markets would be negatively affected.
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