While Empire Fed Manufacturing survey modestly beat expectations (-4.6 vs -7 exp), it has been in contraction for 5 straght months. The biggest driver of the 'beat' was a massive surge in 'hope' (six month outlook surged from 20 to 38.5 - its biggest percentage gain since Nov 2011). At the same time as hope soars, employment tumbles to 6 year lows and average workweek collapses to its lowest since the peak of the crisis in 2009.
5th straight month of contraction...
[2]
As Hope surges and Average workweek collapses...
[3]
And Employment hits 6 year lows...
[4]
Time to raise rates!!
Charts: Bloomberg
