Peeking Under the Hood of the Philly Fed Manufacturing Positive Headline

by Mike ‘Mish’ Shedlock
Mish Talk

On the surface the Philadelphia Fed Manufacturing index was in positive territory at 2. Peeking under the hood, a significant number of problems become visible.

Philadelphia Fed General Activity Index

[…] Image from the Philadelphia Fed August 2016 Manufacturing Business Outlook Survey. Blue highlights mine.

The report states: “The index for current manufacturing activity in the region rose 5 points to only 2.0 in August, as the share of firms reporting an increase in activity (35 percent) barely exceeded the share reporting a decrease (33 percent). This is only the third positive reading of the index in the current year.”

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