U.S. Empire Manufacturing Slips to Record Low as Demands Falter

Daily Forex Fundamentals | Written by DailyFX | Nov 17 08 14:06 GMT |

The Empire manufacturing index fell to a record low reading of -25.4 from -24.6 in October to reach its lowest level since recordkeeping began in 2001. Despite the significant decline in production, the release was slightly better than the -26.0 forecast projected by economists. A breakdown of the report showed that new orders slipped to -22.21 from -20.45, while the employment component plunged to -28.92 from -3.66 in the previous month. Fading demands from home and abroad have led firms to aggressively cutback on production, and conditions may only get worse over the coming months as the major economies around the world head into a recession. In addition, the dour outlook for the world’s largest economy has fueled expectations that employment opportunities will become increasingly scarce as firms cut down on costs, and may lead the jobless rate to surge higher well into the next year. Meanwhile, deteriorating fundamentals continues to spur expectations for a rate cut by the Fed at the December 16th policy meeting, and the central bank may continue to ease policy further in order to avoid a deep and severe recession. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.