Philly Fed Flops – New Orders Plunge As Prices Paid Jump

The Philly Fed’s latest survey shows that manufacturing activity in the region continued to decline overall in December, printing -10.5, will below the -3.0 expected and -5.9 in November.

Source: Bloomberg

That is the 17th monthly decline of the last 19 months – as long a contractionary period as was seen during the GFC.

But, the picture from the Philly Fed is even more troubling as new orders tumbled dramatically (into contraction from +1.3 to -25.6) while prices paid accelerated (more than 33 percent of the firms reported increases in input prices, while 8 percent reported decreases). Employment also fell into contraction.

Source: Bloomberg

We love the smell of stagflation in the morning.