Courtesy of Mish.
Let’s take a look at the latest Fed regional economic surveys to catch a glimpse at current business conditions.
Philly Region Back in Contraction
The November 2012 Philadelphia Business Outlook Survey is back in negative territory.
Indicators Suggest Diminished Activity
The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, decreased 16 points, to a reading of ‑10.7. The fallback of the general activity index followed a single positive reading in October that was preceded by five negative monthly readings. Nearly 32 percent of firms reported declines in activity this month, while 21 percent reported increases. The demand for manufactured goods, as measured by the current new orders index, declined 4 points from last month and remains in negative territory. Shipments also fell this month: The current shipments index fell 7 points, to ‑6.7. Declines in inventories were also more widespread this month; 31 percent of firms reported declines compared with 21 percent in October.
Labor market conditions at the reporting firms remained weak this month. The current employment index, at ‑6.8, was slightly improved from its negative reading in October (‑10.7) but has remained negative for five consecutive months. The percentage of firms reporting decreases in employment (20 percent) exceeded the percentage reporting increases (13 percent). Firms also indicated fewer hours worked: The average workweek index was virtually unchanged but posted its eighth consecutive negative reading.
Current and Future Business Activity
Don’t Blame Sandy
It’s tough to pin this all on Hurricane Sandy although many will try.
New York Manufacturing in Contraction Fourth Month
The Federal Reserve Bank of New York Empire State Manufacturing Survey shows manufacturing declines at modest pace.
The November 2012 Empire State Manufacturing Survey indicates that conditions for New York manufacturers declined at a modest pace. The general business conditions index was negative for a fourth consecutive month, but was little changed at -5.2. The new orders index rose above zero for the first time since June, although it was only slightly positive at 3.1….
