The Philly Fed number dropped from the very high levels and hit 24.5 points, slightly below expectations but still a positive score. This is the number for December.
The Philly Fed manufacturing index was expected to slide from the sky high level of 40.8 to 26.3 points this time.
Among the components, we have a big fall in new orders from 35.7 to 15.7 this time and employment down from 22.4 to 7.2 points. However, capital expenditure is only slightly lower: 21.7 against 23 points. The previous figure of 40 seemed quite unbelievable.
The dollar was strong towards the publication and doesn’t seem to suffer due to the slight miss.
Earlier, jobless claims came out better than expected with a drop to 289K. There was some worry with the number grinding back up towards 300K and now we have a a resumption of lower levels.
The dollar is still supported by the hawkish comments from Yellen. The Fed is set to raise rates in 2015.
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