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Philly Fed Prints At 3.2, Modest Expectations Beat

Tyler Durden's picture


After posting two consecutive negative prints, the most recent of which coming at -7.7, the July Philly Fed rose modestly to 3.2, just above consensus estimates of 2.0. Reading between the lines however confirms that there is nothing to write home about - from the report: "Responses to the Business Outlook Survey suggest that regional manufacturing activity remained weak in July. The survey’s indicators for activity and new orders, which had turned negative last month, recovered somewhat but are at very low positive readings. Firms indicated that employment grew modestly while the average workweek lessened. Indexes for prices show a continuing trend of moderating price pressures. The broadest indicator of future activity improved markedly this month,   rebounding from its lowest reading in 31 months in June." Among the key components of the index, those relating to corporate margins, the prices paid declined by 1.7 even as prices received declined by 3.3, once again confirming that economic margin reality and corporate ZIRP driven surreality refuse to match. And while number of employees increased from 4.1 to 8.9 the Average Employee Workweek plunged from 1.9 to -5.4. Just hire many people and have them all work 1 hour a day: sounds like the unions building the 2nd avenue subway. Nt surprising, inventories rose from -8.5 to 1.4. The survey conclusion: "The survey’s indicators suggested flat demand for manufactured goods this month, while shipments and employment grew only slightly. Price measures suggested continued moderation in price pressures. The broadest indicators for future activity rebounded after falling sharply last month and firms are somewhat more optimistic about their hiring plans over the next six months."



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Thu, 07/21/2011 - 10:20 | 1476964 firstdivision
firstdivision's picture

LEI up on M2 don't see why Philly Fed shouldn't have beat.

Thu, 07/21/2011 - 10:23 | 1476990 Clueless Economist
Clueless Economist's picture

Anyone see Bwaney Fwank on CNBS say with spittle shooting from his fat face that "In fact I have ALWAYS been in favor of poor people renting"

Wow, that lisping, limp wristed poof can lie with impunity.

Thu, 07/21/2011 - 10:36 | 1477048 SMG
SMG's picture

Good call by the Tyler(s) yesterday.

Thu, 07/21/2011 - 10:18 | 1476966 inkarri9
inkarri9's picture

This is what MarketWatch says - "Among the 10 indicators that make up the LEI, five made positive contributions in June, led by the real money supply."  I think I read an article here on ZH a day or two ago saying exactly this.

Thu, 07/21/2011 - 10:18 | 1476967 Archimedes
Archimedes's picture

Good thing I read this site for honest reporting and not for investing purposes. Because otherwise I would be getting crushed! That is why I stay in cash.



Thu, 07/21/2011 - 10:24 | 1476998 SheepDog-One
SheepDog-One's picture

Well if you were following gold and silver here for 'investment advice' youd only be up a few hundred % as of now.

Thu, 07/21/2011 - 10:37 | 1477057 dogismyth
dogismyth's picture

you got that right!!  Ignore the bad news at this point.  Nothing has changed since mar 09.  Its the same modus operandi.  Declines come on good or neutral news, and the insiders pick up shares for themselves and clients near the bottom.  Its comical how blatant it is and how easy it is to use simply volume (on the ETFs) to determine the turns.

The plan will not change until we see the old highs (1576) retested or beaten.  That's what Obama was promised for selling his soul and the soul of this country to the banksters and mega-corporation. can plan on a false flag event (terrorism if you like) to be blamed for bringing down the markets and a probable default on the US debt.

Thu, 07/21/2011 - 10:20 | 1476969 SparkySC
SparkySC's picture

Anyone following the Hedge Fund insider trading scandal in WaMu BK?

These Hedgies are FRAUDS and nothing more than thieves.





Thu, 07/21/2011 - 14:36 | 1478030 slewie the pi-rat
slewie the pi-rat's picture

i put up a little ditty abt opening a morgue acct last week & mentioned the merger.  once the Treasury (paulson) and the banksters got involved, and of course, the NY FED (timmah), the hedge funds had "inside" info?  i'm sure whoever gave it to them is a criminal and not one of the good guys. 

Thu, 07/21/2011 - 10:21 | 1476982 Tense INDIAN
Tense INDIAN's picture

so with thIs BEATING expectation we can expect the SnP to pass Crucial levels::

Thu, 07/21/2011 - 10:23 | 1476992 SheepDog-One
SheepDog-One's picture

Occasional bouncing of the dead body as it bumps along objects on the bottom of the riverbed.

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