Thursday, December 21, 2006

Philly Fed Is Mixed

From the Philadelphia Federal Reserve:

Overall economic conditions in the region’s manufacturing sector declined slightly in December, according to firms polled for this month’s Business Outlook Survey. Indicators for general activity, new orders, and unfilled orders were negative in December. Indicators for shipments and employment, however, were positive and stronger than last month. Although firms again reported higher prices for their own manufactured goods, the survey’s prices paid indicator continues to suggest diminishing cost pressures. The region’s manufacturing executives were less optimistic about future activity; most future indicators decreased for the second month in a row.

Here's a link to a table with the results. It doesn't translate well to the Blogger format.

Here are some interesting points from the table listed above:

1.) 6 months from now, 35% of respondents think new orders will be increasing. Currently only 26% think new orders will increase. 25% see an increase in inventories in 6 months, whereas right now only 16% see an increase in inventories. 37% see an increase in employment in 6 months, whereas only 27% see an increase in employment right now. It looks like people are thinking any slowdown is temporary.

2.) Here's a big piece of information. 53% see an increase in prices paid in six months whereas only 33% see an increase this month. This is something the Fed will probably be interested in.