The latest report on manufacturing from the Philadelphia Fed was a big miss.
The latest index came in at -5.9, indicating contraction in activity in the region.
Expectations were for the report to show the index hit 1.0, which would have indicated a slight improvement in condition during the month of December.
According to the Fed’s report:
“Manufacturing conditions in the region weakened this month … The indicator for general activity, which was slightly positive last month, fell into negative territory. The indexes for new orders and shipments were mixed. Firms reported slight increases in overall employment this month and an increase in average work hours compared with November. Manufactured goods prices, as well as input prices, declined this month. Nearly all of the survey’s future indicators showed notable weakening this month.”
This marks the third time in the last four months that this index has been in negative territory.