This afternoon’s publication of the Philly Fed Manufacturing Index cast doubt on speculations for positive growth in the second quarter across the manufacturing and industrial sectors of the American economy. The reading’s significant contraction underlined the growing weakness in the nation’s manufacturing sector, first outlined by the Empire State index published yesterday.
With global manufacturing in such sharp decline, many analysts are beginning to consider the possibility of significantly reduced growth outlooks in several leading industrial nations. Forecasts for today’s numbers were for a mildly bullish reading of 7.1. The negative 7.7 reading published recently has helped drive many more investors into risk flight mode, which in turn is driving the safe-haven USD and CHF ever higher.
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