Today, the eleventh survey of 2012 for the Philly Fed Manufacturing Index for November was published. This survey projects the U.S. manufacturing conditions. According to the recent survey the conditions have worsen. Further, the index turned negative; the Philly Fed index plunged from +5.3 in October to -10.7 in November. This is a 16 point drop. One of the reasons for this fall may have been due to the adverse effect of Hurricane Sandy on the region. Indexes of prices rose again during the month; this might imply the price pressures have intensified again. The American stock markets are currently traded moderately up. Gold and silver prices are trading down.
If this indicator provides a good estimate for the economic developments of the U.S, it may suggest a negative shift in the manufacturing sectors. This index may also suggest the economic conditions have worsened during November compared with the manufacturing conditions during October 2012. Despite this positive news the survey estimated the general employment conditions have deteriorated again during recent weeks.
This report shows the U.S economy hasn’t improved. Moreover, this survey could be reviewed as a preview for the growth rate of the U.S GDP for the fourth quarter. Since the manufacturing have slightly deteriorated, this could suggest that the U.S GDP growth rate in the fourth quarter might be bit lower than in the previous quarter, assuming this contractions in manufacturing conditions will continue.
This report might negatively affect not only American stock markets, but also the rates of major commodities such as oil, gold and silver.
Following the publication of this report major American stock market indexes including the Dow and NASDAQ are currently edging up; major energy commodities prices such as crude oil are moderately declining; precious metals are currently trading down.
Current gold price, short term futures (December 2012 delivery) is traded at $1,712.9 per t oz. a $17.2 decrease as of 15:16*.
Current oil price, short term futures (December 2012 delivery) is traded at $86.14 / bl a $0.18 decrease as of 15:16*.
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