Philly Fed blames weather for February plunge


"Severe winter weather contributes to weak business activity," says the Philadelphia Fed, leading off its business outlook survey for February.

Full report

The headline number of -6.3 fell from 9.4 in January and is the first negative print in nine months. New Orders fell to -5.2 from 5.1. Shipments plunged to -9.9 from 12.1. Delivery Times -10.6 from -2.8. Prices paid 35.3 vs. 18.7.

Asked about the state of underlying demand, more than 45% said it was increasing, while 19% said it was decreasing.

Optimism remains about the next six months, with the future general activity index rising 5.8 points to 40.2.

The Treasury market is buying the bad weather excuse, with prices remaining lower and yields higher. TLT -0.2% and the 10-year yield up a basis point at 2.75%.

ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, SBND, ZROZ, TLH, DLBS, VGLT, UBT, TLO, LBND, TYBS, TENZ, DLBL

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Comments (4)
  • GaltMachine
    , contributor
    Comments (2068) | Send Message
     
    So I guess that means when and if we ever get global warming it will be really good for the US economy :)
    20 Feb 2014, 10:42 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11168) | Send Message
     
    What BS excuse will they use when it is 65 degrees outside everyday..."light breezes and partly cloudy conditions have caused the slowdown"?
    20 Feb 2014, 10:53 AM Reply Like
  • heraklius
    , contributor
    Comments (108) | Send Message
     
    So the Philly Fed miss was due to the weather but the Markit PMI beat helped by the weather? What gives?
    20 Feb 2014, 12:42 PM Reply Like
  • fred1724
    , contributor
    Comments (67) | Send Message
     
    Nothing from the Fed or the government is anything but manipulated BS.
    20 Feb 2014, 05:05 PM Reply Like
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