Philly Fed 'Hope’ Hammered As Inflation Expectations Soar
After a few strong months of hope-filled renaissance, the Philly Fed business outlook plunged in June with both the current and forward-looking activity indicators dropping significantly (but the Philly Fed notes optimistically, remaining positive)…
Source: Bloomberg
Under the hood, it was even uglier, with new orders recording a second consecutive negative reading in June, and the current shipments index fell 6 points to -7.2, its lowest reading since December.
On balance, the firms continued to report a decline in employment.
Source: Bloomberg
However, most worrisome, Philly Fed firms surveyed reported significant increases in prices overall in June.
The prices paid index rose 4 points to 22.5. Almost 26 percent of the firms reported increases in input prices (up from 19 percent last month), while 3 percent reported decreases (up from 0 percent); 71 percent reported no change (down from 78 percent). The current prices received index increased 7 points to 13.7. Nearly 14 percent of the firms reported increases in the prices of their own goods, no firm reported decreases, and 86 percent reported no change.
Source: Bloomberg
The future new orders index fell 24 points to 16.2, and the future shipments index dropped 46 points to -0.1…
Source: Bloomberg
The question is – will the message of soaring price expectations get through to the voting members? Or will expectations for plummeting new orders dominate their thinking?
Tyler Durden
Thu, 06/20/2024 – 13:00