The Empire Manufacturing index in the US did exactly what was expected, just more so. Instead of rising from 3.7 points to 8.0 points it rose to 10.1 points. All the concurrent indicators rose, but the increase in inventories and hours worked was particularly strong indicating that the job market remains tight while business remains solid for now. However, the outlook worsened significantly as the amount of unfilled orders declined and the general business outlook six months ahead dropped sharply from 29.6 points to 12.4 points, the lowest level in more than three years and, if we ignore the low of early 2016, the lowest level since the financial crisis. Overall, the indicator again confirms our view of a general slowdown in the US economy.
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(Almost) Daily Market News Update
- Published:
16 Apr 2019 -
Author:
Joachim Klement -
Pages:
5
The Empire Manufacturing index in the US did exactly what was expected, just more so. Instead of rising from 3.7 points to 8.0 points it rose to 10.1 points. All the concurrent indicators rose, but the increase in inventories and hours worked was particularly strong indicating that the job market remains tight while business remains solid for now. However, the outlook worsened significantly as the amount of unfilled orders declined and the general business outlook six months ahead dropped sharply from 29.6 points to 12.4 points, the lowest level in more than three years and, if we ignore the low of early 2016, the lowest level since the financial crisis. Overall, the indicator again confirms our view of a general slowdown in the US economy.