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Philly Fed manufacturing index declines in April as outlook drops to three-year low
The numbers: The Philadelphia Fed said its manufacturing index for April declined to a reading of 8.5 in April from 13.7 in March.
Economists polled by MarketWatch expected a reading of 11. Any reading above zero indicates improving conditions.
The index was as high as 32.3 last year but has come steadily lower.
What happened: While the new-orders index jumped, climbing 14 points to a reading of 15.7, the current shipments index fell 2 points, and delivery times fell to its first negative reading in 30 months. The current inventory index fell by 15 points to 2.6.
The index on the outlook for future activity fell to its lowest reading since February 2016.
The big picture: Manufacturing has struggled of late, with the Federal Reserve reporting that industrial production in the first quarter was the weakest since the third quarter of 2017, as the New York Fed said the outlook for manufacturing in its region was “subdued.”
The combination of a strong dollar, weak overseas growth, trade tensions and diminishing fiscal impetus have held manufacturing back.
Market reaction: The Dow Jones Industrial Average DJIA, +0.40% , up 13% in 2019, looked set to rise as futures edged higher. Other economic data, notably retail sales, was strong.
The yield on the 10-year Treasury TMUBMUSD10Y, -1.56% fell 2 basis points to 2.57%.
https://www.marketwatch.com/story/philly-fed-manufacturing-index-declines-in-april-as-outlook-drops-to-three-year-low-2019-04-18
https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx