Philly Fed Takes Nosedive in August, Markets Follow
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Data from the Philadelphia Fed Thursday showed economists were apparently hibernating for the last half of July and beginning of August. A survey of manufacturing in the region took a sharp dive this month, the largest decline in two years.
Dropping to a -30.7, the index was far below the +2.0 expected by economists, and a dramatic shift from a gain of 3.2 in July. Readings above zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware.
Weaker demand from consumers and companies in the U.S. and abroad poses a risk to the industry that spearheaded the recovery.
The report showed the Philadelphia Fed’s new orders measure dropped to -26.8, the lowest since March 2009, from +0.1 in July.
Further, the employment index in the report dropped to minus 5.2, the lowest since October 2009.
Coupled with another contraction in the New York manufacturing index to -7.7, the ISM index may be shaping up for a negative report. That number is due out September 1st. ISM for July came in at 50.9, lower than the 54.0 expected.
U.S. markets are about 4 percent lower for Thursday's session.
Dropping to a -30.7, the index was far below the +2.0 expected by economists, and a dramatic shift from a gain of 3.2 in July. Readings above zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware.
Weaker demand from consumers and companies in the U.S. and abroad poses a risk to the industry that spearheaded the recovery.
The report showed the Philadelphia Fed’s new orders measure dropped to -26.8, the lowest since March 2009, from +0.1 in July.
Further, the employment index in the report dropped to minus 5.2, the lowest since October 2009.
Coupled with another contraction in the New York manufacturing index to -7.7, the ISM index may be shaping up for a negative report. That number is due out September 1st. ISM for July came in at 50.9, lower than the 54.0 expected.
U.S. markets are about 4 percent lower for Thursday's session.
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