Philly Fed Index Bounced Back to 8.1 in December

Today, the twelfth survey of 2012 for the Philly Fed Manufacturing Index for December was published. This survey projects the U.S. manufacturing conditions. According to the recent update the conditions have improved. Further, the index turned positive; the Philly Fed index rose from -10.7 in November to +8.1 in December. This is an 18 point increase. One of the reasons for the rally may have been due to the recovery from the economic slowdown due to Hurricane Sandy. Indexes of prices increased again during the month; this might imply the price pressures have intensified again. The American stock markets are currently traded moderately down. Gold and silver prices are trading sharply down.   

If this indicator provides a good estimate for the economic changes of the U.S, it may suggest a positive shift in the manufacturing sectors. This index may also suggest the economic conditions have improved during December compared with the manufacturing conditions during November 2012. Moreover, the survey estimated the general employment conditions have slightly improved during recent weeks.

This report shows the U.S economy is growing. Moreover, this survey could be reviewed as a preview for the growth rate of the U.S GDP in the fourth quarter. Since the manufacturing have improved, this could suggest that the U.S GDP growth rate in the fourth quarter might rise but at a lower pace than in the previous quarter.

This report might positively affect not only American stock markets, but also the rates of major commodities such as oil.

Following the publication of this report major American stock market indexes including the Dow and NASDAQ are currently edging down; major energy commodities prices such as crude oil are moderately falling; precious metals are currently trading sharply down.

Current gold price (short term delivery) is traded at $1,642.6 per t oz. a $25.3 decrease as of 17:33*.

Current oil price (short term delivery) is traded at $89.51 / bl a $0.24 decrease as of 17:33*.

(* GMT)

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