Analysis: The previous number was a 43.4, so this number was expected to fall big, but it fell even bigger.
The key driver in the index was demand for manufactured goods. While it’s still in positive territory, it saw a 22 point drop from the month previous. The unemployment situation is continuing to improve, though fell off last months highs.
The outlook also dimmed for the next six months, though employment still looks good.
From the Philly Fed:
The future general activity index decreased 29 points this month, its lowest reading since last September (see Chart). The indexes for future new orders and shipments also declined, decreasing 31 and 22 points, respectively. The index for future employment continued to be a bright spot and still reflects optimism about expected expansion in the manufacturing sector. The future employment index increased 7 points. More firms expect to increase employment over the next six months (45 per cent) than expect to decrease employment (7 per cent).
[credit provider=”Philly Fed” url=”http://www.philadelphiafed.org/index.cfm”]