A worker in the mid-Atlantic manufacturing sector works with raw aluminum materials. (PHOTO: REUTERS)
The Manufacturing Business Outlook Survey, the Philadelphia Federal Reserve’s gauge of manufacturing activity in the mid-Atlantic region, rose in June. The survey increased to a positive 4.7 in June, up from negative 1.4 the month prior. The median economist forecast was for a flat reading of zero.
A reading above zero indicates expansion.
While the Manufacturing Business Outlook Survey was generally positive in June, other broad indicators continued to reflect general weakness in business conditions. First, the survey’s subindex for the labor market indicate continued weakness in employment conditions.
The employment index was negative for the sixth consecutive month, declining from –3.3 in May to –10.9 in June. Even though almost 72% of the firms reported no change in employment this month, the percentage reporting decreases (20%) far exceeded the percentage reporting increases (9%). The average workweek index edged up slightly but remained negative, at –13.1.
Special Questions (June 2016)
| Change attributable to: | ||||
|---|---|---|---|---|
| % of firms | Seasonal factors | Business conditions | Other | |
| Increase | 44.4% | 23.6% | 16.7% | 2.8% |
| No change | 13.9% | |||
| Decrease | 40.3% | 9.7% | 29.2% | 1.4% |
| Significant acceleration | 1.4% | % of firms reporting acceleration: 44.9% | ||
| Some acceleration | 26.1% | |||
| Slight acceleration | 17.4% | |||
| No change | 29.0% | |||
| Slight deceleration | 13.0% | % of firms reporting deceleration: 26.1% | ||
| Some deceleration | 11.6% | |||
| Significant deceleration | 1.4% | |||
| Hiring additional workers | 22.6% | |||
| Increasing work hours of current staff, without hiring additional workers | 29.0% | |||
| Increasing productivity of current staff, without hiring additional workers | 41.9% | |||
| Other | 6.5% | |||
| *Subtotals may not sum to totals because of incomplete answers. | ||||
Mickey Shea McLaughlin / June 18, 2016
The Central banks could throw the kitchen sink at trying to stimulate the global economy and would
not do much.
/