Philly Fed Index Says "Stagflation"

Bad news continues to pile on. An economic survey from the Philadelphia Fed indicates that manufacturing acitivity is slumping. Surveyed firms also reported higher prices, for both inputs and own products.

From Calculated Risk

The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, fell from -20.9 in January to -24.0 this month. 40 per cent of the firms reported no change in activity from January, but the percentage of firms reporting decreases (42 per cent) was substantially greater than the percentage reporting increases (18 per cent).

The future general activity index, meanwhile, declined from 5.2 in January to -16.9, its first negative reading since January 2001 and the lowest reading since 1990.

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