Today's release of the Empire Manufacturing report for June came in weaker than expected (2.29 vs 12.50) and showed a large drop from last month's reading of 17.09. It was the largest one month decline since since June 2011, and further put the growth prospects of the US economy in doubt. Across the board, this month's report was weak as not a single subcomponent of the current conditions index increased during the month.
The two large charts below highlight the historical readings of the headline Empire Manufacturing Index (current conditions and expectations six months out) as well as plans for capital expenditures and technology spending. Below those two charts we provide smaller charts showing each of the subcomponents of the main index (current conditions and expectations six months out). If there are any silver linings to this month's report (and we admit it's a stretch), it is that plans for technology spending and capital expenditures six months out both increased and that the majority of subcomponents still remain positive. How long that lasts, however, is anybody's guess.
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