Today, the eighth survey of 2012 for the Philly Fed Manufacturing Index for July came out. This survey estimates the U.S. manufacturing conditions. According to the recent report the conditions have improved but the index was still negative for the fourth consecutive month; the Philly Fed index rose from -12.9 in July to -7.1 in August. Indexes of prices also rose; this may suggest the price pressures have intensified. Currently, the American stock markets are rising. Gold and silver prices are also increasing.
If this indicator offers a good estimate for the economic progress of the U.S, it may suggest a continuous slowdown in the manufacturing progress of the U.S. This index may also suggest there was a slight improvement during August compared with the manufacturing conditions during July 2012. This survey also estimates the general employment conditions that have deteriorated during the month.
This report continues to show little improvement in the U.S economy. The slight improvement in the index and the rise in building permits may prevail in today’s trading to help rally stocks and commodities markets.
Today’s report might positively affect not only American stock markets, energy prices including natural gas and crude oil but also gold and silver.
Currently the major American stock market indexes including the S&P500 and Dow are increasing; major energy commodities prices such as crude oil prices are also rising; precious metals are also trading up.
Current gold price, short term futures (September 2012 delivery) is traded at $1,585.5 per t oz. a $14.7 increase as of 16:01*.
Current silver price, short term futures (September 2012 delivery) is traded at $27.335 per t oz. a $0.24 increase as of 15:48*.
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