CNN Money: Philly Fed points to stalling economy

[corporatemedia]

Philly Fed points to stalling economy

Factories laid off workers for 1st time in 3 years, overall weakness reported.
September 21 2006: 12:22 PM EDT


NEW YORK (Reuters) -- U.S. Mid-Atlantic factories retrenched for the first time in more than three years in September, the latest sign of a rapidly slowing economy.

The Philadelphia Federal Reserve Bank said on Thursday its business activity index tumbled to -0.4 this month from 18.5 in August, far beneath forecasts around 14.8. It was the first reading below zero since April 2003, indicating a decline in regional manufacturing.


The entire survey was very weak. New orders also slipped into negative territory, at -1.3, down from 15.7. The six-month business outlook fell below zero for the first time since January 2001 - just before the last U.S. recession.

The regional survey is one of the first indicators of U.S. manufacturing every month and is often viewed as a guidepost to the health of factories nationwide. It covers eastern Pennsylvania, southern New Jersey, and Delaware.

http://money.cnn.com/2006/09/21/news/economy/philly.reut/index.htm?postversion=2006092112

Expect even lower gas prices in an attempt to prop up the pre-election economy.

[AX10]

1. A recession is a real possibility.

[VegasWolf]

2. Rove's October surprise, another Bush recession. nt

[hatrack]

3. NO! This CAN'T be happening!!

:eyes: