Posted on 08/19/2010 8:37:34 AM PDT by Qbert
A key measure of manufacturing in the Mid-Atlantic region fell unexpectedly in July to its lowest level in a year, while an economic forecasting gauge rose less than expected, further signs that the US economic recovery is slowing.
The Philadelphia Federal Reserve Bank said its business activity index fell to minus 7.7 in August from July's plus 5.1. Any reading below zero indicates a shrinking in the region's manufacturing.
The August reading was the lowest and also the first contraction since July 2009, when the economy was recovering from the credit crisis.
"We see data like this and it kind of confirms the bottom end of the scenario and it's going to be pretty tough all over right now for commodities, equities," said Dan Cook, senior market analyst at IG Markets in Chicago.
Economists had expected a reading of 7.0, based on the results of a Reuters poll, which ranged from minus 6.0 to plus 10.0.
The Philadelphia Fed survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware and is seen as one of the first monthly indicators of the health of U.S. manufacturing leading up to the national report by the Institute for Supply Management, which is due next on September 1.
Stocks extended declines following the report, while prices of US Treasury debt—considered a safe-haven financial investment—turned positive and the dollar fell against the yen.
The report was not the only gloomy data the markets had to contend with on Thursday.
(Excerpt) Read more at cnbc.com ...
I’ve been seeing this same headline for 4 months now. Thus prompting the question, “What recovery?”
The MSM really should give up at this point. No rational, sane person believes that we’ve ever been in any sort of recovery.
Somebody needs a pic of a car crash with a caption reading, it appears to be slowing...
My fear is this is the new normal, just like Europe.
Ya think? Why does CNBC even bother to call it a "recovery".
Well there's yer problem!
“Recovery is slowing”
I never thought I’d actually live to see a day when what used to be informational media devolved to become simply an operation of politically biased and agenda driven Orwellian-speak.It’s simply incredible.
there never was a recovery...the gov temp jobs ran out.thats all
Arrghhh! There never was a recovery, unless it was in ice cream sales to the Obamas! Just because the stock market went up for a while, does not mean we had a recovery.
The bottom line is that Libs are realizing it is a lot easier to talk an economy down than talk it up...
On a call right now with IHS Global Insight and they have revised down their 2011 GDP to 2.5% growth. They believe that 2Q10 GDP growth will be revised downward from the original BEA report of 2.4% to 1.1%.
An ISI survey of economists shows 2011 GDP average of 1.9%. That’s pathetic after such a deep recession.
well can’t wait to see this sentence in Nov....the house and senate unexpectedly fll to the republicans in a asswhooping landslide.
there, i approve of the use of the word unexpectedly in that sentence.
The media is trying to condition us into accepting the new socialist state like it’s always been this way. I forget if we’re at war with Oceania or Eastasia at the moment.
I see signs that this cat's recovery is slowing..............
See Post 18.............
Because their advertisers and guest "analysts" want you to buy more stuff you can't afford and invest in stocks for which there are no current earnings prospects.
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