One word to explain the Philly Fed which just printed at -16.6, or the weakest since August 2011, on expectations of an unchanged print: abysmal. Basically every subcomponent of the index was negative except for number of employees, although luckily we already know that US jobs (even part-time ones) are collapsing too. In short: if this horrendous print does not boost stocks higher, nothing can.
Oh and the market continues to be bathed in hopium. While the current conditions cratered, the 6 month forward looking index... rose.
From the Survey:
Indicators Suggest Decreases in Activity
The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, fell from a reading of ?5.8 in May to ?16.6, its second consecutive negative reading (see Chart 1). Nearly 40 percent of the firms reported declines in activity this month, exceeding the 22 percent that reported increases in activity. Indexes for new orders and shipments also showed notable declines, falling 18 and 20 points, respectively. Indexes for current unfilled orders and delivery times both registered negative readings again this month, suggesting lower levels of unfilled orders and faster deliveries.
Firms’ responses suggest steady employment this month but shorter hours. The percentage of firms reporting higher employment (14 percent) edged out the percentage reporting lower employment (12 percent). The current employment index increased 3 points this month. Firms indicated fewer hours worked this month: the average workweek index decreased 14 points and posted its third consecutive negative reading.
Indexes for prices paid and prices received both decreased and were negative this month, suggesting that price pressures have moderated notably. The prices paid index fell to ?2.8, its first negative reading since July 2009. Nearly 16 percent of firms reported declines in input prices; 13 percent reported increases. Firms also reported that the prices received for their own products fell: For the second consecutive month, more firms reported a decrease in product prices (17 percent) than reported an increase (10 percent).