Econoday was expecting a reading of +0.5.

Philadelphia Fed Release:

http://philadelphiafed.org/research-and-....

Partial quote:

Quote:

June 2012 Business Outlook Survey

Firms responding to the June Business Outlook Survey indicated weaker business conditions this month. The survey’s indicators for general activity, new orders, shipments, and average work hours were all negative this month, suggesting overall declines in business. Input price pressures were less in evidence this month, with more firms reporting declines in input prices. And for the second consecutive month, more firms reported declines in prices for their products than reported increases. The survey’s indicators of future activity remained positive and improved slightly, suggesting that the current weakness in activity is expected to be short-lived.

Indicators Suggest Decreases in Activity
The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, fell from a reading of -5.8 in May to -16.6, its second consecutive negative reading (see Chart). Nearly 40 percent of the firms reported declines in activity this month, exceeding the 22 percent that reported increases in activity. Indexes for new orders and shipments also showed notable declines, falling 18 and 20 points, respectively. Indexes for current unfilled orders and delivery times both registered negative readings again this month, suggesting lower levels of unfilled orders and faster deliveries.

Firms’ responses suggest steady employment this month but shorter hours. The percentage of firms reporting higher employment (14 percent) edged out the percentage reporting lower employment (12 percent). The current employment index increased 3 points this month. Firms indicated fewer hours worked this month: the average workweek index decreased 14 points and posted its third consecutive negative reading.

Price Indexes Decline This Month
Indexes for prices paid and prices received both decreased and were negative this month, suggesting that price pressures have moderated notably. The prices paid index fell to -2.8, its first negative reading since July 2009. Nearly 16 percent of firms reported declines in input prices; 13 percent reported increases. Firms also reported that the prices received for their own products fell: For the second consecutive month, more firms reported a decrease in product prices (17 percent) than reported an increase (10 percent).

Despite Weakening, Outlook Remains Positive
The future general activity index improved from a reading of 15.0 in May to 19.5 in June (see Chart). Although area manufacturers are not as optimistic as they were earlier in the year, the percentage of firms expecting increases in activity over the next six months (34 percent) is higher than the percentage expecting decreases (14 percent). The indexes for future new orders and shipments remained positive and also improved, increasing 12 and 17 points, re-spectively.

In special questions this month, firms were asked about their plans for capital spending over the next six to 12 months. The share of firms expecting to increase their capital spending on plant and equipment (32 percent) was greater than the share planning reductions (20 percent). On balance, these responses represent some improvement over the responses received when the same question was asked in November 2011. Although slightly fewer firms expect increases than in November, far fewer firms anticipate decreases in capital spending. There was a significant increase in the share of firms that expect to keep capital spending constant (from 25 percent in November to 42 percent in June).

Summary
The June Business Outlook Survey suggests that firms in the region’s manufacturing sector are experiencing declines in overall activity this month. Firms reported a notable falloff in new orders and shipments. Overall, employment remained steady, but average work hours were lower. Price pressures continued to recede this month, and more firms reported declines in prices for their own goods than reported increases. The outlook among the reporting firms, while not as optimistic as in the first quarter, suggests that firms believe that activity will rebound over the next six months.

Philadelphia Fed Complete Writeup (.pdf):

http://philadelphiafed.org/research-and-....

Diffusion Indexes, line by line:

New Orders: -18.8
Shipments: -16.6
Unfilled Orders: -16.3
Delivery Times: -15.5
Inventories: -8.7
Prices Paid: -2.8
Prices Received: -6.9
Number of Employees: 1.8
Average Employee Workweek: -19.1

Wow! That sucks! and completely unexpected...

Yes, We CAN!!!!!!!!!!!!!!!!!!

This lines up with what some of my (immigrant) in-laws are reporting from the area. There are NO factory jobs for illegals right now...it all dried up about 2-3 months ago.

Based on the same sources, you can expect this number to plunge even more in the coming months. Since I'm indirectly tied into the illegal immigrant scene I can tell you the "on the ground" reports are that most illegals are moving back home and that hiring is almost non-existent where 4 months ago factory work was pretty brisk.

This number supports the news I've been getting.

Sheeeit. More illegals in the DC area than ever. I'm sure they are hopping in their u-hauls and heading 2 hours south to manassas park where they are welcomed with open arms instead of heading home.

Jonx, that is the exception, not the rule.

If you think that is the norm, you have no clue what you are talking about. Most folks who are here illegally want to do one thing and one thing only. Make money to send home to their families. If there are no jobs or money to be had, there is no reason for them to stay as they too are human and miss their families and the lives that are familiar to them back in their home countries. I worked for a large .corp that had a few illegals and many legals on worker visas. All of them espoused exactly what I wrote above. Sure some come to stay. but that is NOT the norm. Many if not most illegals are here without their families.

Please do not read this as a plea for illegals. In fact I think that this demonstrates how easy it would be to control illegals in this country by limiting the opportunities available to them.

Not quite Spazz. In my area there are a lot of landscaping firms, horse farms and mushroom farms that use illegals. These people live in communities together, bring their families with them, buy houses, get driver's licenses, have kids, and in general behave like everyone else making $10-15 an hour for seasonal employment. None of the ones I've met are homesick or planning on going home. Most of their immediate family is here. ..and they're all long-term illegals. You meet a lot of them in the horse world, because they do all the scut barn work.

One illegal Ecuadorean I know has a wife and 3 kids here, owns 2 houses, one of which he rents to other illegals, has a brother and family in NYC, another brother and family in CT, and a sister and family in FL. He has aunts and uncles scattered around as well. Do you really think he's planning on leaving ? In the winter when he has no work, he collects unemployment, his kids go to public schools, and they use the emergency room for any medical issues. Never been hassled by ICE; as long as he has a driver's license he's got access to anything.

Quote:

New Orders: -18.8
Shipments: -16.6
Unfilled Orders: -16.3

Whoa - I'm not seeing it here where the health insurance and univerity factories are positively humming.

I'm with JOnx, I live near him. All the transients that were here to send cash back home left about 2009-2010. They were literally overrunning the place. Boarding houses were everywhere. The ones that are left have DL's CC's and SNAP/WIC and "own" homes. They're staying.

Tin, there is no difference here in the park compared to 2009. In fact I think more are here now than then because they were being hassled more then. Nowadays they know nobody is going to hassle them. Calm as Hindu cows. They aint going anywhere nor are they homesick at all. There are tons of jobs in the DC area now because RE is booming again. My realtor friend tells me houses under $200k sell same day with multiple offers. It's crazy out there in the market right now in the DC area and illegals are working in the blue collar fields like it's 2005 again. The west side of the park is full of overcrowded houses that everyone in local government just pretends don't exist. I don't buy the leaving for home argument one bit. Leaving for greener pastures perhaps but certainly not to their home country.

When you have an entire metro area that runs entirely on other people's money (federal tax payers), of course it's going to do better than the rest when the economy tanks. Hell, just look at the Vatican - similar situation.

The mafia also tends to do well in poor economic situations.

You're missing my point Antone. I'm not arguing that. What I'm arguing is that illegals KNOW where the jobs are and are leaving other places for here and other localities where there is still a lot of work. They sure as **** aren't heading home. They won't head home until they have sucked up every last job/resource that they can in this country.