- The Big Picture - http://www.ritholtz.com/blog -

Regional Surveys, LEI show Growth Slowing

Posted By Barry Ritholtz On May 19, 2005 @ 8:04 pm In Economy | Comments Disabled

Michael Panzner [1] draws our attention to the Fed’s Regional surveys — which have been showing signs of ongoing weakness.

click for larger graphic

Gdp3surveys [2]

Panzner observes:

"This week two out of three regional surveys of economic activity
flashed early warning signs that U.S. economic growth may be poised to
slow.

On Monday, the Empire (New York) Federal Reserve Survey declined
sharply, coming in at a much lower-than-expected -11.1. Today, the
Philadelphia Fed Factory Index also fell, again surprising the market
with a near two-year low  reading of 7.3.

A quick read of the relationship between year-on-year growth in U.S.
Gross Domestic Product and those two surveys (plus the Chicago
Purchasing Managers Index, due out on May 31) suggests these regional
surveys may be worth paying especially close attention to."


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/05/regional-surveys-lei-show-growth-slowing/

URLs in this post:

[1] Michael Panzner: http://www.amazon.com/exec/obidos/ASIN/032124785X/thebigpictu09-20

[2] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/gdp3surveys.jpg

Copyright © 2008 The Big Picture. All rights reserved.