Similar to its next door neighbor in New York, today's release of the Philadelphia Fed report for January was both negative and weaker than expected. With consensus expectations calling for a level of 6.0, the actual reading came in at -5.8. Although today's reading was negative, this indicator is rather volatile, so we would not put too much weight into readings that are below 10 on either side of zero.
The individual components of the report were weak as well. Of the nine sub-components to the report, seven were below zero. Only Shipments and Prices Paid were above zero. The positive readings in Prices Paid for both the Philadelphia and Empire Manufacturing reports is noteworthy, if for no other reason than the fact that it is at odds with both the CPI and PPI reports, which were both at zero or below in their latest reads.