US manufacturing activity is rapidly expanding: The Philadelphia Fed Manufacturing Index of current business conditions rose +6.0 points in August, to 47.4, its highest since April 2021. This is a survey of manufacturers across eastern and central Pennsylvania, southern New Jersey, and Delaware. At the same time, the index of future business conditions jumped +39.2 points, to 73.6, its highest level since the 1980s and its largest monthly increase on record. Meanwhile, the index of future new orders soared +30.9 points, to 66.0, its highest since June 2021. All while the 6-month forecast for capital expenditures surged +18.1 points, to 48.2, its highest since the 1970s. The US manufacturing sector is gaining momentum.(The Kobeissi Letter)