After 2 brief dead-cat-bounce months of hope, The Empire Fed business survey has tumbled back into contraction (-4.21 missing expectations of +2.0).
The index is now at 3 month lows despite rises in the number of employees, average workweek, shipments, and new orders but 'hope' tumbles to its lowest since Feb 2016.
Indexes for the six-month outlook revealed that respondents remained optimistic about future conditions, though to a lesser extent than in July.
The index for future business conditions fell for a second consecutive month, dropping six points to 23.7. Indexes for future new orders and shipments also edged lower. Indexes for future employment and the average workweek were below zero, suggesting that firms expected employment and hours worked to decline in the months ahead. The capital expenditures index fell to 4.1, and the technology spending index retreated to 5.2
Yet again the central banks' asset-inflation efforts are failing to revive confidence…
via http://ift.tt/2aU4phL Tyler Durden