Philly Fed: Continued Sharp Decline

Bottom Line: The New York Fed's Empire Manufacturing Index remained deeply in contraction territory in February as new orders continued to decline. Shipments were sharply lower, as were unfilled orders.  Employment, which had been holding up in this sector and across manufacturing more broadly, fell sharply. Overall, manufacturing remains very weak and was continuing to decline in the first half of March. Increasingly the contraction in manufacturing suggests that US goods consumption has turned sharply lower.

The Philadelphia Fed Manufacturing Index ROSE 1.1 points to -23.2, BELOW the 3-Month average of -18.8, BELOW the 6-Month average of -15.45, and -46.4 BELOW the year-ago level.  On an ISM-weighted basis the index FELL -20.2 points to -21.6, BELOW the 3-Month average of -7.37, BELOW the 6-Month average of -5.3, and -47.6 BELOW the year-ago level.