Philadelphia Fed manufacturing index continues to be negative

The Philadelphia Fed manufacturing index for January rose to -3.5 from -10.2, as compared with Barclays forecast of -10 and consensus projection of -5.9. On a monthly basis, shipments surged to 9.6 from -2.1, while new orders stabilised slightly to -1.4 from -11.1. However, labor market indicators continue to be weak with the employment index at -1.9, as compared with the previous 2.2. The average workweek entered the negative territory at -2.2, as compared with previous 0.6.

The inventories index also fell sharply to -15.7 from -5.7. The ISM-adjusted version of the index increased to 49.1 from 46.5. The surge in shipments is for a brief period of time as the unfilled orders continue to shrink at -8.8, as compared with previous -17.6.