Philly Fed Index Comes In At Ridiculously Strong 22.5

The number: Forget Monday’s weak Empire Manufacturing Index. Expectations were for 5, so this was super strong…

From the Philly Fed:

The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, increased from a reading of 1.0 in October to 22.5 in November (see Chart). This is the highest reading in the index since last December. Indexes for new orders and shipments also improved this month, and each index increased 15 points. Indexes for both delivery times and un-filled orders changed from negative to positive this month, suggesting improvement.

labour market conditions also showed some improvement this month, paralleling the improvement in other broad indicators. This month, firms also reported some growth in employment and a longer workweek. The percentage of firms reporting increases in employment (27 per cent) was greater than the percentage of firms reporting decreases (14 per cent). The index for employment was positive for the third consecutive month and increased 11 points. The average workweek index increased significantly, from -6.0 to 10.9.

Check out the details behind the blistering report here >
Background: Here we go with the title-card event on what’s already been a very busy morning (GM IPO, Ireland, initial claims, market rally, etc.).

Due to Monday’s dismal report from the Empire Manufacturing Index, there’s a lot of interest in this survey. Analysts expect a reading of 5, which is up from 1 last month. Bear in mind that this is a diffusion index, so a reading of 5 means that the percentage of companies seeing improved conditions surpasses the percentage seeing worsening conditions by 5 points.

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