Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Philadelphia Fed Factory Outlook Falls to Lowest Since 1979

Published 2022-07-21, 11:24 a/m
© Reuters.

(Bloomberg) -- Philadelphia-area manufacturers’ outlook for business conditions slumped this month to the lowest level since 1979 as gauges of future new orders and planned capital expenditures both deteriorated. 

Federal Reserve Bank of Philadelphia data on Thursday showed a measure of business conditions six months from now slid nearly 12 points to minus 18.6. The index of manufacturers’ current assessment dropped 9 points to minus 12.3, worse than all estimates in a Bloomberg survey of economists.

The Fed bank’s future index of new orders decreased 5 points to minus 12.4, also the weakest since 1979, with about one-third of manufacturers anticipating declines six months from now. The figures highlight growing anxiety about demand and the economy’s prospects amid widespread inflation and higher borrowing costs. 

Separate data Thursday showed the Conference Board’s index of leading economic indicators dropped 0.8% in June, the steepest slide since April 2020 during the height of the pandemic.

“Amid high inflation and rapidly tightening monetary policy, the Conference Board expects economic growth will continue to cool throughout 2022,” Ataman Ozyildirim, senior director of economic research at the Conference Board, said in a statement. “A US recession around the end of this year and early next is now likely.”

Increased pessimism about the economy is prompting firms to reconsider capital spending plans. The Philadelphia Fed’s index of future capital expenditures slipped to 4.4 in July from 11.7 a month earlier.

©2022 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.