Producer prices decline, but Empire State Manufacturing survey is the bad news

The Empire State Manufacturing survey is bad

Here is the report (PDF) from the New York Fed.

Let’s just take a visual journey down the road to disinflation/deflation and economic contraction.

The Empire State Manufacturing survey is in contraction.

New York Fed

Here are the pictures showing new orders and inventories sagging. That is a bad combination. Prices paid by manufacturers declining and so too their prices received. So much for “cost-push” inflation in manufacturing. Employment is also dropping. Not good folks, and FOMC is on deck next week. Should be interesting.

Empire state manufacturing survey
Empire State manufacturing survey

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