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United States News Title: Big Miss In Richmond Fed, Prints At -2, On Expectations Of 5, As Consumer Confidence Plunges To 48.5 On Consensus Of 52.4 (Another Obama Epic Fail) Big Miss In Richmond Fed, Prints At -2, On Expectations Of 5, As Consumer Confidence Plunges To 48.5 On Consensus Of 52.4 Tyler Durden's picture Submitted by Tyler Durden on 09/28/2010 09:01 -0500 And risk off. 7 out of 8 Richmond Fed indicators declined, with just Vendor Lead-Time remaining flat at 0. Number of Employees plunged from 12 to -3. And w/r/t the now almost certainly sub 50 print, Shipments, Volume and Backlog all plunged by 10 or more points. In a word, total diffusion index massacre. As for consumer confidence: somehow the record September surge in stocks did nothing to make people forget juw how broken the US economy is, and that they do not enjoy being lied to about recessions being over. The Conference Board printed at 48.5, compared to 53.2 revised in July, on expectations of 52.4. From the Richmond Fed: Manufacturing activity in the central Atlantic region pulled back in September after expanding during the previous seven months, according to the Richmond Fed's latest survey. The index of overall activity was pushed lower as shipments and employment edged into negative territory. Other indicators also suggested softer activity. District contacts reported that the volume of new orders flattened, order backlogs turned negative, and delivery times held steady. Furthermore, manufacturers reported growth in capacity utilization flat lined, while inventories grew at a slightly quicker pace. Despite the decline in activity, manufacturers were more optimistic about their future prospects in September. Survey contacts anticipated that their shipments, new orders, backlog of orders, capacity utilization, and the average workweek would grow more rapidly in the months ahead. Survey measures of current prices revealed that both raw materials and finished goods prices grew at a more measured pace in September. Respondents indicated that during the next six months they expected somewhat faster growth in both raw materials and finished goods prices from what they had anticipated last month. Current Activity In September, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — turned negative, losing thirteen points to h2;2 from August's reading of 11. Among the index's components, shipments fell fifteen points to h2;4, new orders lost ten points to finish at 0, and the jobs index declined fifteen points to h2;3. Other indicators also suggested weaker activity. The backlogs of orders measure turned negative losing eleven points to h2;11, and the index for capacity utilization flattened declining fourteen points to 0. The delivery times index held steady at 8, while our gauges for inventories were somewhat higher in September. The finished goods inventory index inched up four points to 15, and the raw materials inventory index advanced four points to finish at 13. Activity Index Shipments Index New Orders Index Employment Labor market activity also weakened in September. The manufacturing employment index registered a h2;3 versus August's reading of 12, and the average workweek measure lost fourteen points to 0. In addition, wage growth posted a five-point loss to 8. Employment Index Expectations In the September survey, contacts were more bullish about their business prospects during the next six months. The index of expected shipments skyrocketed thirty-one points to 38, and the new orders index climbed twenty-six points to 42. In addition, the capacity utilization index jumped twenty-three points to 33, and the backlogs indicator advanced twenty-one points to 20. The vendor lead time index turned positive, gaining seven points to 6, while planned capital expenditures held steady at 8. District manufacturers' intentions to expand hiring were also generally more bullish than a month ago. The expected manufacturing employment index was virtually unchanged at 10, and the average workweek indicator soared nineteen points to 20. Furthermore, the expected wages index posted a sixteen-point gain to 24. Prices District manufacturers reported that raw materials prices increased at an average annual rate of 1.31 percent — a pullback from August's reading of 2.19 percent. Finished goods prices rose at a 1.06 percent pace, which was somewhat below August's reading of 1.45. Looking ahead, respondents expected that the prices they pay will advance at a 2.46 percent pace, slightly above the previous month's expectation of 2.21 percent. Additionally, contacts looked for finished goods prices to increase at a 1.17 percent annual rate, a bit above last month's expectation of 0.91 percent.
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