Courtesy of Mish.
Philly Fed Misses Expectations
Bloomberg reports Manufacturing in Philadelphia Regions Expands for Third Month
The Federal Reserve Bank of Philadelphia’s general economic index fell to 9.3 this month from a reading of 19.8 in July that was the highest since March 2011. Readings greater than zero signal growth in the area, which covers eastern Pennsylvania, southern New Jersey and Delaware.
The median forecast of 54 economists surveyed by Bloomberg called for a reading of 15. Estimates ranged from 7 to 23.
Industrial Production Unchanged
Manufacturing in the Philadelphia region may be up, but overall manufacturing is negative while industrial production is unchanged for July.
Industrial production in the U.S. was unchanged in July as a slowdown at factories overshadowed an increase in mining.
The reading for output at factories, mines and utilities followed a 0.2 percent gain the prior month that was smaller than previously reported, a report from the Federal Reserve showed today in Washington. The median forecast in a Bloomberg survey of 82 economists called for a 0.3 percent rise in July.
Manufacturing, which makes up 75 percent of total production, declined for the first time in three months.
Month-Over-Month Manufacturing Declines
Manufacturing is down month-over-month but only slightly. Let’s look at some longer term trends in manufacturing and industrial production.
Industrial Production Percent Change From Year Ago
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