A quick review of regional services, mfr'g and the national housing data

The July Philly non-manufacturing index fell to the lowest level since December 2020. New orders, sales, backlogs, inventories, full time employment and the average workweek were all below zero. Prices paid rose almost 6 pts to a 3 month high. Those received fell 2.7 pts m/o/m but at 13.9 is above the 6 month average of 11. Capital spending plans were mixed.

Bottom line, the softness in this July survey follows the June ISM services index which surprised by falling below 50 and something of course to watch from here.

Philly Non-Mfr’g

The July Richmond manufacturing index fell to -17 from -10 and follows the contraction seen in the NY survey and compares with the Philly outlier where its manufacturing survey has been positive for six straight months. The Richmond survey is negative for 9 straight months and not including Covid, the -17 print is the weakest since April 2009.