US Economy Snaps As Richmond Fed Plummets Most On Record
by Tyler Durden
ZeroHedge.com
Wed, 12/26/2018
Those seeking an economic indicator of an imminent recession just got one courtesy of the Richmond Fed Manufacturing Index, which tumbled from 14 in November to -8, crushing expectations of a modest rebound to 15, weighed down by drops in the indexes for new orders and shipments.
With analysts expecting the Richmond Fed to print between 12 and 17, the -8 print was a 20 sigma event relative to expectations.
The internals were an unmitigated disaster, with the shipments index print of -25 was its lowest reading since April 2009 even as the third component, the index for employment, rose. Additionally, respondents indicated a deterioration in local business conditions, as this index fell to −25, its lowest reading on record. Most other metrics were dismal:
Shipments fell to -25 after 12 the prior month
Local business conditions printed the lowest on record at -25 after 5 last month
New order volume slowed to -9 after 17 the prior month
Order backlogs fell to -18 after 15 the prior month
Capacity utilization slowed to -16 after 9 the prior month
Inventory levels of finished goods increased to 13 after 2 last month
Inventory levels of raw goods rose to 15 after 5 last month
The Rest…HERE
