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Tuesday, March 24, 2020

Philly Fed: "Nonmanufacturing firms reported a significant weakening in activity this month"

by Calculated Risk on 3/24/2020 08:39:00 AM

From the Phily Fed: March 2020 Nonmanufacturing Business Outlook Survey

Note: Survey responses were collected from March 5 to March 19.

Nonmanufacturing firms reported a significant weakening in regional nonmanufacturing activity this month, according to results from the Nonmanufacturing Business Outlook Survey. The survey’s indexes for general activity at the firm level, sales/revenues, new orders, and full-time employment all fell sharply and into negative territory this month, coinciding with developments related to the coronavirus. …

The diffusion index for current general activity at the firm level fell sharply from 36.1 in February to -12.8 in March, its lowest reading since July 2011 … The full-time employment index fell 23 points to -1.7.
emphasis added
This graph shows the Philly Fed Nonmanufacturing General Activity and Employment indexes.

Philly Fed Nonmanufacturing Click on graph for larger image.

Some of this survey was in early March, but it is clear the COVID-19 is having a significant on nonmanufacturing activity.