Following August's collapse (from 13 to 0), September's Richmond Fed followed on the heels of Philly, Empire, and Dallas Fed surveys and collapsed to -5 - its lowest since January 2013. Under the covers it is a total disaster, the average workweek crashed from 3 to -12 - the lowest level since April 2009 (as did the order backlog). New Orders and Capacity Utilization also plunged to its lowest since Jan 2013 as clearly the inventory accumulation is starting to feedback into prodiction cuts. Combined, the regional surveys suggest a notable plunge in overall ISM in September... flashing bright red recession warnings.
Complete carnage under the covers...
- Order Backlogs at lowest since April 2009
- New Orders weakest since Jan 2013
- Capacity Utliization lowest since Jan 2013
Following weakness in Empire, and Philly Fed surveys, this suggests September ISM will be notably below the crucial '50' level.