Philly Fed Index Turned Positive in October

Today, the tenth survey of 2012 for the Philly Fed Manufacturing Index for October came out. This survey estimates the U.S. manufacturing conditions. According to the latest survey the conditions have improved again. Further, the index turned positive for the first time since April 2012; the Philly Fed index rose from -2.3 in September to +5.7 in October. Indexes of prices also slightly increased; this may suggest the price pressures have intensified again. The American stock markets are currently traded slightly up. Gold and silver prices also trade moderately down.   

If this indicator provides a good estimate for the economic progress of the U.S, it may suggest a positive shift in the manufacturing sectors. This index may also suggest there was a modest improvement during October compared with the manufacturing conditions during September 2012. Despite this positive news the survey estimated the general employment conditions have deteriorated again during the month.

This report continues to show a modest improvement in the U.S economy.  Further, this survey could be reviewed as a preview for the growth rate of the U.S GDP. Since the manufacturing have slightly improved, this could suggest that the U.S GDP growth rate in the fourth quarter might be bit higher than the third quarter, assuming this positive growth in manufacturing conditions will continue to improve.

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

Following the publication of this report major American stock market indexes including the S&P500, Dow and NASDAQ are currently edging down; major energy commodities prices such as crude oil prices are also falling; precious metals are also trading slightly down.

Current gold price, short term futures (November 2012 delivery) is traded at $1,744.2 per t oz. a $8.8 increase as of 15:30*.

Current oil price, short term futures (November 2012 delivery) is traded at $91.04 / bl a $1.08 increase as of 15:30*.

(* GMT)

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