It’s NOT always sunny in Philadelphia. Particularly when the Philly Fed non-manufacturing survey screams stagflation (a nauseating combination of economic slowdown and inflation).
After a positive surprise in July, Philly Fed’s non-manufacturing survey slumped back into contraction in August (from +1.4 to -13.1). Additionally, while respondents continue to expect a growth over the next 6 months, that optimism is fading rapidly…
Source: Bloomberg
On a non-seasonally-adjusted basis, the Philly Fed Services survey plunged to -20.0 – practically its lowest level since the COVID lockdowns…
Source: Bloomberg
Under the hood it’s even uglier with stagflationary impulses rearing their ugly heads.
Price indicator readings suggest continued increases in prices for inputs and the firms’ own goods and services.
The prices paid index increased 7 points to 46.2 this month. More than 50 percent of the firms reported increases in input prices. Regarding prices for the firms’ own goods and services, the prices received index rose from 7.8 to 14.6.
At the same time the indexes for sales/revenues and new orders both recorded negative readings this month
Source: Bloomberg
Is the ‘Services’ side of the economy finally catching down to the reality of the ‘Manufacturing’ side as savings run dry?
Now that The Fed and Fed Chair Powell are meeting at Jackson Hole WYO for the annual symposium, here is a video of Powell (Green Man) dancing with symposium attendees.
