Posted on 08/18/2011 7:54:58 AM PDT by Free Vulcan
WASHINGTON (MarketWatch) — Factory activity in the Philadelphia region weakened sharply in August to the lowest level seen in more than two years, the Federal Reserve Bank of Philadelphia said Thursday, adding to fears that the economy has ground to a halt.
The Philly Fed’s business outlook survey fell to negative 30.7 in August from 3.2 in July. This is the lowest reading since March 2009.
Readings below zero indicate contraction in the region’s factories. The size of the decline in the index stunned analysts — economists had expected a reading of 0.5 in August...
(Excerpt) Read more at marketwatch.com ...
New orders index plunged to -26.8 from 0.1, shipments -13.9 from -4.3, unfilled orders -20.9 from -16.3, employment -5.2 from 8.9.
The Philly Fed covers Pennsylvania, New Jersey, and Delaware. Both it and the Emipre State index show a near collapse in manufacturing activity in the Northeast.
The Chicago PMI and the ISM survey will give a better indication in a couple of weeks of conditions across the country. My gut says this economy is not only heading into a double dip, but plunging rapidly.
Butt ugly is right, but didn’t we just get an OK report out of New York? How can the report out of NY be OK and the report from states right next door be butt ugly? Very curious.
It was a -7.7 from -3.7 a month before so it fell fairly good too.
Of course, not! Manufacturing data isn't included in the GDP. All that matters there is consumer spending and government spending. The Keynesians and wannabe-Keynesians can simply ignore it.
That's the problem with GDP. By the time slowing manufacturing results in hours cutbacks and layoffs, you're 6 months down the road before consumers actually reduce their consumption. And then, everyone is shocked!
We really need a better measure of economic growth.
That should be good for another hundred point drop in the DOW on top of what we already have so far.
It plunged about 150+ when that came out at 10a EST along with the existing home sales report.
The markets watch the business conditions indexes like a hawk. After the employment reports those are usually what move the markets most.
Oh and the inflation numbers were not pretty either, dido unemployment numbers.
Experts say even if they dropped interest rates to zero nobody would buy.
Frightening numbers. Double dip recession here we come. I’m new BTW folks. Great forum. Happy I found it.
Welcome to FR!
Thanks:)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.