Philly Fed Explodes To Highest Since Interest Rates Were 14%
The Philly Fed Business Sentiment Indicator exploded higher in March. Against expectations of a rise from 23.1 to 23.3, it jumped by the most ever to 51.8…
That is the highest level since the Arabian Oil Crisis in 1973.
Under the hood, everything jumped except inventories…
New orders rose to 50.9 vs 23.4
Employment rose to 30.1 vs 25.3
Shipments rose to 30.2 vs 21.5
Delivery time rose to 29.5 vs 15.1
Inventories fell to 12.1 vs 20.0
Prices received rose to 31.8 vs 16.7
Unfilled orders rose to 21.8 vs 12.6
Average workweek rose to 39.7 vs 30.6
Six-month outlook rose to 61.6 vs 39.5
But, the surge is driven by a massive spike in the prices-paid index (which rose to 75.9 vs 54.4)
As a reminder, the mid to late ’70s were not a fun time for inflation and markets… and 10Y Yields were at 14%!!
…Brace, as either corporate profits are about to be crushed or the end customer is about to see huge inflation…
But, as Powell reassured us all, this is just transitory.
Thu, 03/18/2021 – 08:39