New orders index plunged to -26.8 from 0.1, shipments -13.9 from -4.3, unfilled orders -20.9 from -16.3, employment -5.2 from 8.9.
The Philly Fed covers Pennsylvania, New Jersey, and Delaware. Both it and the Emipre State index show a near collapse in manufacturing activity in the Northeast.
The Chicago PMI and the ISM survey will give a better indication in a couple of weeks of conditions across the country. My gut says this economy is not only heading into a double dip, but plunging rapidly.
Butt ugly is right, but didn’t we just get an OK report out of New York? How can the report out of NY be OK and the report from states right next door be butt ugly? Very curious.
Of course, not! Manufacturing data isn't included in the GDP. All that matters there is consumer spending and government spending. The Keynesians and wannabe-Keynesians can simply ignore it.
That's the problem with GDP. By the time slowing manufacturing results in hours cutbacks and layoffs, you're 6 months down the road before consumers actually reduce their consumption. And then, everyone is shocked!
We really need a better measure of economic growth.
Frightening numbers. Double dip recession here we come. I’m new BTW folks. Great forum. Happy I found it.