Results from the Philadelphia Federal Reserve show business activity in the region is slowing, a sign the economic recovery has already begun to burn out.
The June “Business Outlook” data indicated that
“Regional manufacturing activity
continues to expand in June, but at a slower
pace than in May. Surveyed firms reported
no expansion of overall employment and
work hours compared with May. Fewer firms
also reported increases in prices of inputs this
month. The survey’s broad indicators of future
activity continued to suggest that the
region’s manufacturing executives still expect
growth in business over the next six months.”
The news came the same day that weekly jobless claims showed no relief for unemployment and The Conference Board’s economic indicators were disappointing.The Philly Fed report added that
The survey’s broadest measure of manufacturing
conditions, the diffusion index of
current activity, decreased notably from a
reading of 21.4 in May to 8.0 in June. The
index, which had edged higher for four consecutive
months, fell back to its lowest reading
in 10 months.
The rest of the nation does not seem to be doing much better.
Douglas A. McIntyre
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