As expected, manufacturing in the Philadelphia Fed region continues a long string of contractions.
Economists were pretty much on target, something that frequently happens when the current month is a repeat of last month.
The Econoday Consensus was -2.5 with an actual reading of -2.8. Last month’s reading was -3.5.
The Philly Fed report, much like Tuesday’s Empire State report, is pointing to continuing trouble for the nation’s factory sector. The general business conditions index came in at minus 2.8 to extend a long run of negative readings. New orders, at minus 5.3, have also been stuck in the minus column as have unfilled orders, at minus 12.7. Shipments, at plus 2.5, are positive for a second straight month but aren’t likely to hold above zero for very long given the weakness in orders. Employment is in the contraction column for a second straight month at minus 5.0 with the workweek also posting a second month of contraction at minus 12.9. Manufacturers in the region continue to draw down inventories, to indicate sagging expectations, with the 6-month outlook down nearly 2 points to 17.3 which is still in the plus column but very low for this reading. Price data continue hold in the negative column. This report is a disappointment and belies yesterday’s manufacturing strength in the industrial production report.
Philadelphia Fed vs. Industrial Production
This was the sixth consecutive month of manufacturing contraction in the Philly Fed region.
Mike “Mish” Shedlock
If I tell you that you should become the next president of the USA, you could not care less If I tell you that common sense has disappeared from the face of the earth and I consider the work you do the champion of common sense would you take it to face value?
If you do, let us start the common sense website where brilliance is considered a sin, manipulation a word for short sellers, markets NOT the essence of life, politics the realm of greed corruption and total abandonment of integrity.
How can we get away from the fear instilled everyday to force us accepting the unacceptable (I DONT!!!!) as’ they’ are sure we will not fight back.
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Rail wearing a lampshade in the corner at the contraction party
WASHINGTON, D.C. – Feb. 17, 2016 – The Association of American Railroads (AAR) today reported U.S. rail traffic for the week ending Feb. 13, 2016.
For this week, total U.S. weekly rail traffic was 505,148 carloads and intermodal units, down 3.8 percent compared with the same week last year.
Total carloads for the week ending Feb. 13 were 244,334 carloads, down 15.4 percent compared with the same week in 2015, while U.S. weekly intermodal volume was 260,814 containers and trailers, up 10.4 percent compared to 2015.
…
For the first 6 weeks of 2016, U.S. railroads reported cumulative volume of 1,454,056 carloads, down 15.6 percent from the same point last year; and 1,563,265 intermodal units, up 5.7 percent from last year. Total combined U.S. traffic for the first 6 weeks of 2016 was 3,017,321 carloads and intermodal units, a decrease of 5.8 percent compared to last year.
https://www.aar.org/newsandevents/Press-Releases/Pages/2016-02-17-railtraffic.aspx
The USA would be in a depression without seasonal adjustments.