Quotes from Capital Economics:- The drop back in the Philly Fed manufacturing index to a more believable 24.5 in December, from a completely ridiculous 40.8 in November, is nothing to worry about. That November reading was a 21-year high which, even though industrial production has been rising at a rapid clip recently, simply wasn't believable.- Moreover, even at 24.5, the Philly Fed index is still at a level that historically has been consistent with GDP growth of around 4% annualised. Accordingly, it will help to ease any concerns after December's Empire State manufacturing index came in at -3.6, down from +10.2. – Again, as with the November Philly Fed spike, we suspect that the latter slump was also mostly noise rather than any signal that, in this case, the global slowdown is suddenly undermining US manufacturing.
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