Philly Fed Business Survey Shows Contraction Spreading

Philadelphia Fed Business Outlook Survey

The Philadelphia Fed Business Outlook Survey for October surprised to the downside. The consensus range was -4.0 to 3.0. The actual number was -4.5.

The Philadelphia Fed Business Outlook Survey suggests that the contraction in the U.S. economy from weak exports is spreading outward and now seeping into the Mid-Atlantic manufacturing sector. This is the second drop in a row.

New orders fell 20 points from September to -10.6. Shipments fell 19.9 points from September to -6.1. Employment is now contracting at -1.7, a whopping 11.9 point fall from September.

Philadelphia Fed Business Outlook Survey

Traders track the Philly Fed Business survey because it gives a detailed look at the manufacturing sector, how busy it is, and where things are headed. Traders like to see healthy economic growth in the manufacturing sector because that translates to higher corporate profits. Since manufacturing is a major sector of the economy, this report has a big influence on market behavior.

Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on unless specifically stated in the article. Owner of Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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