US: Philly Fed Manufacturing Index plunges to -12.7 in February from 36.7

• Manufacturing activity contracts sharply in Philadelphia region in February.
• Greenback ignores disappointing data, preserves strength against rivals.

The headline Diffusion Index of the Federal Reserve Bank of Philadelphia’s Manufacturing Business Outlook Survey slumped to -12.7 in February from 36.7 in January. This reading missed the market expectation of 10 by a wide margin.

“Responses to the March Manufacturing Business Outlook Survey indicated a notable weakening in manufacturing activity,” noted Philly Fed in its publication.

Additional takeaways

“The indicators for current activity, new orders, and shipments decreased markedly from their readings in February.”

“The survey’s current employment and workweek indexes remained positive but also moderated. Both prices paid and prices received indexes reflected easing price pressures.”

“The survey’s future indexes suggest that respondents expect declines to be short-lived, inasmuch as they continue to expect growth in manufacturing activity over a horizon of six months.”

USD reaction

Despite the dismal reading, the US Dollar Index stays near 102.40, where it’s still up more than 1.3% on a daily basis.