One Of The Biggest Fears About The Economy Is Getting Blown Out Of The Water

The December Philly Fed Index came in much better than expected, rising to 8.1 vs. expectations of -3.0.

The index is a survey of manufacturers in the Philly region, whereby they answer a survey on business conditions for the last month.

The survey is considered to be a good one, and frequently it’s paid attention to in a way that other regional Fed surveys (like, say, Richmond) aren’t.

Anyway, one of the big fears is that pre-Cliff uncertainty is grinding business investment to a halt.

This survey says no: Every category, from new orders to shipments to the number of employees was up significantly from the previous month.

Some of it may be Sandy giveback, but the fact that the turnaround was far better than what people expected implies a briskness in business that’s out of step with the popular meme about the economy going into paralysis.

Here’s the key table. Note

image

 

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

economy moneygame-us