Economic Report: Philly Fed Manufacturing Index Sees Big Plunge In March

The numbers:The Philadelphia Fed manufacturing index in March plunged to -12.7 after registering 36.7 in the previous month. That’s the lowest reading since June 2012.

Any reading below zero indicates worsening conditions. Economists polled by MarketWatch had expected a 8 reading.

What happened: The headline index is based on a single stand along question about business conditions unlike the manufacturing index which is a composite based on components

In March, the components moved in a similar direction, with the new-orders index falling to - 15.5 from 33.6. The shipments index fell 25 points to 0.2.

The big picture: A similar survey conducted by the New York Fed saw sentiment saw a record decline to -21.5 in March. Economists think the manufacturing sector will be hit hard by the coronavirus shutdown of economic activity.

Market reaction: U.S. stock-index futures traded lower Thursday. The Dow Jones Industrial Average DJIA, -6.30% fell 1,338.46 of 6.3% to end at 19,898, its lowest close since early 2017.

RECENT NEWS

Gyrostat Capital Management: The Missing Allocation In Retirement Portfolio Construction?

For decades, retirement portfolios have largely been constructed using combinations of growth assets a... Read more

When The Gate Comes Down

A Stress Test Rather Than a ScandalApollo Debt Solutions is not a blow-up story. It is something arguably more instructi... Read more

What If The Investment Industry Is Benchmarking The Wrong Things?

  Investment management is built around benchmarking.  Fund managers compare themselves a... Read more

SpaceX Is Looks To Make History

The Biggest Bet in Wall Street History: SpaceX's $1.78 Trillion IPOThere are moments in financial history that stop you ... Read more

Gyrostat June Market Outlook: When Low Volatility Conceals Structural Risk

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direc... Read more

Why Low Volatility Is Not The Same As Low Risk

Why Low Volatility is Not The Same As Low Risk Some of the worst-performing portfolios in... Read more