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2012-06-26 10:39 by Karl Denninger
in Macro Factors Ignore this thread
Richmond Fed Drops

Well isn't that a pattern....

In June, the seasonally adjusted composite index of manufacturing activity—our broadest measure of manufacturing—lost seven points to -3 from May’s reading of 4. Among the index’s components, shipments declined two points to -2, new orders dropped thirteen points to end at -12, and the jobs index moved down eight points to 8.

Don't get too crazy-bearish on this -- yet.

Employees and wages both remained positive - so far.  But workweek contracted, and new orders and backlog both collapsed.  Shipments and capacity both are negative and prices received are not holding up.

This is a bad report and follows on the back of the disastrous Philly Fed index.  One more month and the recession calls will start coming "fast and furious" -- I'll go ahead and issue one now -- we'll recognize it somewhere around December, +/- three months.