Fra Zerohedge:
It’s March Madness in Philly. Thanks to the biggest jump in New Orders since Oct 2005, Philly Fed surged to 15-month highs (jumping from -2.8 to +12.4) crushiung expectations of -1.5. Number of employees improved mopdestly but remains in contraction but “hope” soared to 5 month highs led by exuberant expectations for capex and average workweek. Do you believe in miracles?
The Manufacturing Business Outlook Survey suggests a pickup in general activity in March. The survey’s indicators for general activity, new orders, and shipments all improved notably from their readings in February. Firms reported that overall employment was steady. Indicators reflecting firms’ expectations for the next six months improved this month.
So the headline surges to 15 month highs…
Driven by a yuuge spike in new Orders…
Thank goodness for seasonal adjustments.
The diffusion index for current activity increased from a reading of -2.8 in February to 12.4 this month, its first positive reading in seven months. Both the current new orders and shipments indexes also showed improvement this month. The current new orders index returned to positive territory, increasing 21 points to 15.7. Nearly 37 percent of the firms reported an increase in new orders this month. The current shipments index rose 20 points, to 22.1. The unfilled orders and delivery time indexes showed notable improvement, increasing 11 points and 16 points, respectively. While the unfilled orders remained slightly negative, the delivery time index reached its first positive reading in 11 months. Firms continued to report overall declines in inventories.
Across the board, Philly Fed was higher…
But one has to wonder, with Japanese and Chinese trade data so dismal, and inventories at near record levels, just who is placing all these new orders?
