The Philly Fed Index for August came in much lower than expected, at negative 7.7 when it was expected to be a positive 7.
This is down from a positive 5.1 reading in July.
Check out the gritty details behind the Philly Fed report >
Markets are down on the news:
- Dow down 1.35% (Blue)
- NASDAQ down 1.26% (Gold)
- S&P 500 down 1.45% (Red)
From the Philly Fed:
Regional manufacturing executives responding to the Business Outlook Survey in August reported moderate weakness in the sector. The survey’s broadest indicators suggest that activity in the sector shrank. The general activity index decreased to – 7.7 from a reading of 5.1 in July.
The percentage of firms reporting declines in new orders and shipments exceeded the percentage reporting increases. labour market conditions in the sector receded in August, as more respondents cut the number of employees and hours worked than increased them.
While the firms continue to expect growth in the manufacturing sector, their optimism has waned.
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