The U.S. Federal Reserve Bank of Philadelphia’s August manufacturing index rose to 47.4, far exceeding market expectations of 25, reaching the highest level since April 2021; the prior reading was 41.4. Among the sub-components, the employment index rose to 27.9, the highest since April 2022; the six-month business outlook index rose to 73.6, the highest since August 1983; and the prices paid index fell to 40.9, the lowest since February. The data underscores the resilience of U.S. manufacturing and employment. At a time when market pricing for a Fed rate hike in September has dropped to about 33% and the U.S. dollar index remains below 99 near a three-month low, this data may provide some support for the dollar. $DXY is for information only and does not constitute investment advice.