Here comes the Philly Fed ...

The latest reading on manufacturing activity from the Philadelphia Federal Reserve is set for release at the bottom of the hour.

Expectations are for the report to come in at -5.9, indicating contraction in the region’s manufacturing sector.

In a note to clients on Wednesday, Joe LaVorgna at Deutsche Bank said the Philly Fed’s report is highly correlated with the more popular ISM survey, which covers the whole country.

LaVorgna noted that while manufacturing might only account for a small(ish) part of private employment and GDP growth, this sector is often predictive of underlying turning points in the broader economy.

To this end, LaVorgna said the Philly Fed’s six-month outlook is particularly worth watching.

We’ll be back with the live numbers when they cross.

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