Philly Fed manufacturing index slumps into negative territory in February

Source: Marketwatch

The numbers: The Philadelphia Fed manufacturing index in February dropped sharply into negative territory. The index fell to a seasonally adjusted reading of -4.1 from 17 in the prior month. This is the first negative reading since May 2016.

Any reading below zero indicates worsening conditions. Economists polled by Econoday expected a reading of 14.

What happened: Below the headline, the indexes for new orders and shipments dropped sharply into negative territory. The employment indicator remained positive. Firms were generally optimistic about the outlook for the next six months.

The big picture: The sharp drop fits with other manufacturing data suggesting the U.S. is now succumbing to the global industrial downturn. The Empire State index rebounded in February but remained close to a two-year low.

Read more: https://www.marketwatch.com/story/philly-fed-manufacturing-index-slumps-into-negative-territory-in-february-2019-02-21?mod=newsviewer_click

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I would not normally post this, but it is truly a huge drop and is a closely watched gauge of economic activity...

With an expected drop of 3 points becoming a real drop of 21+ points ... this could be the first of many bad readings ...