U.S. Philly Fed index fell 5.2 points to 8.5 in April
U.S. Philly Fed index fell 5.2 points to 8.5 in April after surging 17.8 points to 13.7 in March. That's a larger decline than forecast, but the components looked a lot better. The index was at 23.4 a year ago, and last year's high was 32.3 (May), with a low of 9.1 (December). Employment increased to 14.7 from 9.6, with the workweek at 11.2 from 10.6 as the labor market remains tight. New orders climbed to 15.7 from 1.9 and compares to a cycle peak of 38.5 in May. Inventories dropped back to 2.6 after surging to 17.2 in March (highest since August 1981). Prices paid edged up to 21.6 from 19.7, with prices received dipping to 20.0 from 24.7. The 6-month outlook slipped further to 19.1 from 21.8 and is the lowest since February 2016). Despite the headline miss, the report is still decent and argues against a big slump in manufacturing, and the economy.