While Wednesday’s Empire Manufacturing report for the month of July came in better than expected, today’s same release for the Philadelphia region missed the mark.  While economists were expecting the headline reading to show a small decline from 15.2 down to 12.0, the actual level came in much weaker at 5.7.  As shown in the chart below, this week’s decline more than erased all of last month’s pickup.

Philly Fed Main Chart 071815

Philly Fed Main Table 071815The secondary indicators of the Philly Fed report were just as weak as the headline index would suggest.  As shown in the table to the right, all but two subcomponents declined this month.  Among the decliners, some of the biggest were in New Orders (-8.1) and Shipments (-9.9).  On the upside, the biggest increase was in Prices Paid (+3.0).  In terms of the employment picture, while Thursday’s initial jobless claims report was better than expected, both employment components of the Philly Fed report showed declines, and that comes on the heels of weak employment components in Wednesday’s Empire Manufacturing survey.  While the headline index and most of the sub-indices declined this month, we would note that they are all mostly at levels that indicate growth.


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