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UPDATE: Despite analyst predictions that the Philadelphia Fed Index of manufacturing would rise to -8.0 this month, the index stayed soft at a troubling -12.9.While this index is more positive than last month’s -16.6, it still indicates that manufacturers see business activity contracting.
This is one of three big negative reports today, as initial jobless claims and existing home sales both missed expectations.
This may not be so bad for markets, however, if investors think we’ve seen enough data to push the Federal Reserve to embark on another round of quantitative easing at their next meeting on July 31-August 1.
ORIGINAL: In just a few minutes, we’ll get our latest read on the Philadelphia Fed Business Outlook Survey, which indicates where manufacturers see business activity headed in the regions followed by the Philly Fed.
Last month, that index fell to -16.6, indicating a steep decline in manufacturers’ outlook.
Analysts polled by Bloomberg believe that the index will rise to a still-sour -8 this month.
The latest number comes out at 10 AM ET.