Services
Philly Fed & Leading Indicators Show More Risk Of Slowdown
Published:
Last Updated:
The woes of Europe and the slowing of growth in the BRIC nations is starting to show up more and more in the economic numbers being reported and this will act to support the recent drop in the stock market. It feels like the “Sell in May and go away” trend may have been right after all in 2012 just as it was in the last two years. Today’s weekly jobless claims did not offer much insight, but the Philadelphia Federal Reserve activity index and the so-called “Leading Indicators” are showing more concern about U.S. growth.
The Philadelphia Fed’s manufacturing survey showed that the pace of growth fell from a higher growth rate in recent months, while the survey’s broad indicators for general activity fell into negative territory for the first time in eight months. The reading came in at -5.8 as prices paid and received fell sharply in the report. Bloomberg had the consensus for Philly Fed at 10.0 and the range of estimates was 5.0 to 13.0 for this report.
The Conference Board’s report on Leading Indicators for April fell by 0.1% after being up by 0.3% in March. Bloomberg had estimates of 0.1% for the leading indicators, and the range of estimates was 0.0% to 0.3% for the report. This last month had only five of the ten indicators in the positive, although its coincident index did manage to rise by 0.2%. Delivery times were the worst drag and this was the first negative report in eight months.
The equity markets were all lower ahead of the data and these reports do not exactly signal any great confidence.
JON C. OGG
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.