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Empire Manufacturing Misses For 4th Month In A Row As Spending Outlook Plunges To 15-Month Lows

Tyler Durden's picture




 

Having plumbed the depth of 2-year lows in April, May's Empire Manufacturing printed a disappointing 3.09 (against expectations of a bounce to 5.00 from -1.19). This is the 4th miss in a row and for context is the same level as we dropped to in January 2008. Number of employees and prices paid (and received) tumbled, new orders edged higher but crucially 'hope' plunged back to 3-month lows. Furtures expectations for CapEx and Tech Spending also collapsed.

 

 

The May general business conditions index advanced four points but, at 3.1, indicated that business conditions were only slightly better over the month. 30% of respondents reported that conditions had improved, while 27% reported that conditions had worsened.

Tech Spending expectations at 15 month lows... the biggest MoM decline since Nov 2008

 

Optimism Wanes

The index for future general business conditions fell seven points to 29.8, suggesting a positive but less favorable outlook than last month. The future new orders index held steady at 33.9, and the index for future shipments was little changed at 31.8. All three of these indexes remain well below the levels seen throughout most of 2014.

 

Both indexes for future prices fell, indicating that price increases were expected to be somewhat less widespread in the months ahead. The index for future employment fell six points, but at 16.7, it still suggested that employment levels were expected to rise. The capital expenditures index declined nine points to 15.6, and the technology spending index fell to 1.0.

Charts: Bloomberg

 

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Fri, 05/15/2015 - 08:42 | 6096623 RushRoolz
RushRoolz's picture

WooHoo!!! Bad news = increased QE odds = BTFD!!!

Fri, 05/15/2015 - 08:47 | 6096637 VinceFostersGhost
VinceFostersGhost's picture

 

 

Bad news is great news for equities.

Fri, 05/15/2015 - 09:03 | 6096691 venturen
venturen's picture

BUY THAT ALL TIME HIGH!!!

Fri, 05/15/2015 - 08:42 | 6096624 wmbz
wmbz's picture

This info. could send the DOW over 18,500 today!

Onward and upward, screw whoever it takes.... that's the un-fed moto!

Fri, 05/15/2015 - 08:45 | 6096625 yogibear
yogibear's picture

LOL, and stocks keep going up pushing to new highs.

As Peter Schiff and Richard Duncan says, the next QE has to happen.

It's 0 rates and infinite QE. Until a currency crisis.

Fri, 05/15/2015 - 09:02 | 6096685 BeaverCream
BeaverCream's picture

War is more likely.

Fri, 05/15/2015 - 08:49 | 6096643 youngman
youngman's picture

Capital expendures and Technology costs are dropping...because you cant buy your own stock back if you spend on that stupid stuff..

Fri, 05/15/2015 - 08:56 | 6096664 saints51
saints51's picture

Bullish Baby!!!!!!!!! I like bubbles. I like'em a lot.

Fri, 05/15/2015 - 08:57 | 6096666 aliki
aliki's picture

and with this adding to the length of the string of dog-shit data points, the US10-year should close comfortably below 2.24-2.25, fed on hold until 2016 at the earliest, algos/quants re-program/re-price, dow should be up 200-300 points today. great fucking way to run a global economy; this will promote more buybacks & M&A (due to lo, no, and upcoming negative growth), EPS will tick higher, actual quality high-paying jobs will drip lower. all u need to do to crystalize the disconnect in the jobs #'s is look at the amount of jobs created (which still suck) relative to new & existing homes being purchased. with ZIRP and rents at an all time high, the "middle class" should be sucking up houses like a vacuum cleaner but they can't because the jobs being created suck & cost of living is absolutely killing people due to the fed's constant flame-thrower approach to the USD.

Fri, 05/15/2015 - 08:59 | 6096676 Dr. Engali
Dr. Engali's picture

Should be good for anther 20 points on the S&P.

Fri, 05/15/2015 - 09:04 | 6096695 Monetas
Monetas's picture

Where is Get Zee Gold ..... I miss his amusing .... mediocre posting .... with my morning cafe .... ole !

Fri, 05/15/2015 - 09:04 | 6096697 venturen
venturen's picture

S&P up 100 points a day from now on.... WHY NOT!

Fri, 05/15/2015 - 09:12 | 6096726 surfvin
surfvin's picture

Qe 4 will be the coup de gras

Fri, 05/15/2015 - 09:21 | 6096785 Dumgoy
Dumgoy's picture

Hope plunged?   But that's all we got!

Fri, 05/15/2015 - 09:32 | 6096841 Temerity Trader
Temerity Trader's picture

It doesn't matter...it just means no rate hikes and more QE likely! Duh! "Stocks set to Soar on the Bad News!"  I can hear the perma-bears now, "But eventually fundamentals matter!" No they don't...well, okay, maybe at Dow 30k after QE 11 when millions finally give up hope. Are your pockets that deep? If the massive loans for stock buybacks, property purchases, etc. start to go bad, there will be bailouts again. They cannot let this fail..it is now the biggest most important market ever. If the markets plunges, it all come apart and Greece will look like a party. Every oligarch and banker understands this and they are a long way from cutting back on stimulus and deficit spending needed to prevent a meltdown and then watching the cities burn.

Trying to short stocks of companies which are seeing declining sales and revs and poor earnings has been a fools errand. Any dip is bought furiously, as millions know the Fed will come to the rescue.  Good luck all.

Fri, 05/15/2015 - 13:11 | 6097808 LooseLee
LooseLee's picture

You should run for congress. Then you could be a bonafide Pinko Fascist Commie instead of a 'Closet' Socialist. Your very thoughts strengthen these ideas in the stream of human consciousness and therfore make you on par and complicit in these things. No, sir. Good luck to you....

Fri, 05/15/2015 - 12:47 | 6097713 Falling Down
Falling Down's picture

I can relate to the data.

 

Manufacturing activity here in NY is falling off a cliff. Two headhunters here in town have told me hiring came to a screeching halt on or about January 1st.

In my neck of the woods here at work, things really started to slow down a couple of months ago, after business had already slowed some the 2nd half of last year.

Gird your loins, and BOHICA.

 

 

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