Skip to comments.Philly Fed manufacturing index plunges in May (forecast plus 10.0; actual minus 5.8)
Posted on 05/17/2012 7:14:25 AM PDT by Eccl 10:2
WASHINGTON (MarketWatch) - Business conditions at manufacturing firms in the Philadelphia region worsened in May, according to the monthly survey issued Thursday by the Federal Reserve Bank of Philadelphia. The Philly Fed index fell to -5.8 from 8.5 in April, well below expectations. Economists polled by MarketWatch had expected the index to increase to 10.0. Reading below zero indicate that more companies are contracting instead of expanding. The new-orders index dropped to -1.2 from 2.7 in April and the employment index, a gauge of hiring expectations, also turned negative.
(Excerpt) Read more at marketwatch.com ...
“...well below expectations.” = COMPLETELY UNEXPECTED!
The LSM must have caught on to the fact that we were ragging on them about using, “unexpected” all the time so they’ve had to get creative and find other ways of expressing it.
Okay, they were 'expecting' 10.0 but got a -5.8.
Now we know why they are called 'ECONOMISSEDS'..........
None of this will help Obama.
The question is really whether the piper who must be paid will get his tribute before or after the election. If the reckoning can be postponed past November, Obama has a chance. If it comes after Romney's election, will he get the blame, Pro hoc Proctor Hoc?
All three great props to the world economy are in trouble. In 2008-2009 China stimulated its domestic infrastructure economy and helped the world economy along. Now that bubble seems to be breaking and with it will go the economies and currencies of all the extraction countries and industries. That means the BRICS will suffer greatly.
Japan is in very grave trouble and that will compound if it sees reduction to its large market, China.
In short, there is no single place on the world horizon which offers much hope for turning economies around.
God help us if Obama is reelected.
Stocks lower after Philly Fed data
REUTERS 22 MINUTES AGO
NEW YORK (Reuters) - Stocks extended losses as data showed manufacturing in the in the U.S. mid-Atlantic region unexpectedly contracted in May, adding to concerns about the global economy as Europe’s debt crisis threatens to worsen.
The Dow Jones industrial average dropped 51.16 points, or 0.41 percent, to 12,547.39. The Standard & Poor’s 500 Index dropped 7.36 points, or 0.56 percent, to 1,317.44. The Nasdaq Composite Index dropped 20.10 points, or 0.70 percent, to 2,853.94.
(Reporting By Edward Krudy)
I don't know what constitutes your definition of reckoning, but if things continue as is, Obama won't be reelected. And the trend line is that they will get progressively worse. You are spot on about the global economy. China will not be able to bail out the global economy like it did in 2008. And Japan, the EU, and the US have stalled economies with Japan and the EU heading into a double dip recession.
With more severe economic consequences, one would expect to see social disruption and even violence.
I am not one who believes that the world will learn lessons from suffering the consequences of our own profligacy, that is, our own indulgence in soft socialism. Therefore, I am not sanguine that the political implications of a reckoning are favorable to conservatism or to democracy.
You and I are on the same wavelength considering the world economy and the consequences for Obama's reelection hopes.