Philly Fed Contracts For 6th Month In A Row As "Hope" Crashes To Nov 2012 Lows

Tyler Durden's picture

While jobless claims look rosy, Philly Fed's employment index plunged by the most since May 2013 as the headline survey extended its period of sub-50 contraction to six straight months - the longest streak outside of a recesssion in history. Across the board the underlying components were weak with current all tumbling led a collapse in average workweek, employment, and new orders. Worse still, the "hope" index plunged to its lowest since Nov 2012.

6 straight months of contraction flash red for recession...


The underlying components were a disaster...


As hope plunged...

The diffusion index for future general activity fell from a reading of 19.1 in January to 17.3 this month. The index has trended down since last summer and is now at its lowest reading since November 2012 (see Chart 1). The largest share of firms expects an increase in activity over the next six months (42 percent), but 25 percent expect declines. The future indexes for new orders and shipments also edged down slightly this month. Firms’ forecasts for future employment have been moderating the past few months. The future employment index fell from 5.5 to 2.3 this month, the third consecutive decline. The future workweek index also declined into negative territory for the first time in six months.

Charts: Bloomberg

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knukles's picture

That Hope index sure Changed.

Kagemusho's picture

The problem with hopium is the same as that of opium: it takes bigger and bigger doses to achieve the same results, and ultimately the addict is using only to stave off the inevitable painful withdrawal symptoms.

NEOSERF's picture

Expect that the next round of QE will be a global coordinated QE with China, Japan, EU, Fed move with the "whatever it takes" moniker which should be enough to refloat the markets for another 1.5 years or so...and then the wheels come off bad.

two hoots's picture

So everyone is working producing what?  Seems we have a "just existing" economy for about 70%.  Gone, Gone, the Damage Done.

Squid Viscous's picture

as soon as I get off my $9.50 an hour shift at Panera, I go for the 2 for 1 bud light special at Buffalo Wild Wings...

see how that works? USA!! USA!!

Squid Viscous's picture

downvoter guy, this is Fight Club do you have something to say, or just another pussy with a computer and internet connnection?


edit: that's what i thought...

MFL8240's picture

More good recovery news!