Latest Philadelphia Fed survey - muted growth


Manufacturing activity in the region increased at a modest pace in March, according to firms responding to this month’s Manufacturing Business Outlook Survey. (See above chart, click on the chart to enlarge it). 

The survey’s current indicators for general activity and new orders were positive and remained near their low readings in February.

Firms reported over-all declines in shipments and in work hours, while overall employment increased only slightly.

Firms reported more widespread price reductions in March, although most firms continued to report steady prices.

The survey's indicators of future activity showed mixed results but continued to suggest that the manufacturing sector is expected to continue growing over the next six months.

The demand for manufactured goods, as measured by the current new orders index, remained at a very low, albeit positive.

The bottom line? The economy does not seem to provide evidence of much growth ahead. The Fed will have to wait a long time before seeing inflation become a threat.

It looks like the business cycle remains unfavorable for commodity-type of investments and more favorable for conservative and low risk assets.

Are bonds one of the best investments? Time will tell.

More details in The Peter Dag Portfolio on www.peterdag.com

George Dagnino, PhD

The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull or Bear Markets
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