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.

NOW WATCH: This one ingredient is making a lot of Americans fat

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.