Reply #23: about that report - err - the devil is in the details [View All]

[UpInArms]

http://www.reuters.com/article/bondsNews/idUSN1549907820080815

 Aug 15 (Reuters) - The New York Federal Reserve Bank said
on Friday its "Empire State" manufacturing activity index rose
in August to 2.77 from -4.92 in July.
 Following is a breakdown of the survey's components:
                      Aug    July    June     May   April
                     2008    2008    2008    2008    2008
General Business      -------- Diffusion Index -------------
Conditions           2.77   -4.92   -8.68   -3.23    0.63
Prices Paid            65.17   77.89   66.28   69.57   57.29
Prices Received        32.58   32.63   26.74   15.22   20.83
New Orders             -2.20    8.27   -5.48   -0.46    0.06
Shipments              -0.86   13.54   -6.54    4.55   17.49
Delivery Time          -3.37   -2.11   -6.98    0.00   -3.13
Inventories             5.62  -14.74   -2.33   -6.52   -4.17
Unfilled Orders        -8.99   -8.42  -10.47   -4.35   -6.25
Number of Employees    -4.49   -6.32    1.16    1.09    0.00
Average Workweek        1.12   -8.42   -2.33    1.09    0.00

                      Aug    July    June     May   April
                     2008    2008    2008    2008    2008
General Business      -------- Six months from -------------
Conditions          34.58   15.55   32.17   23.88   19.57
Prices Paid            69.66   74.74   73.26   64.13   61.46
Prices Received        52.81   47.37   47.67   30.43   34.38
New Orders             47.29   27.33   27.05   21.14   33.25
Shipments              45.37   29.17   28.22   21.64   26.37
Delivery Time          -8.99  -18.95   -8.14   -9.78   -7.29
Inventories             3.37   -4.21   -6.98   -4.35   -4.17
Unfilled Orders         7.79    5.54   -0.95    1.65    3.47
Number of Employees    14.71   10.62   16.96    7.49    4.08
Average Workweek        6.74    2.11   -3.49   -5.43    7.29
Capital Expenditures   14.61   11.58   22.09   13.04   11.46

Note: Diffusion indexes represent the percentage indicating
an increase minus the percentage indicating a decrease.

if you look at the diffusion index - while the prices paid decreased and the prices received increased (offsetting earlier prices paid increases- the new orders also decreased and the inventories built up (meaning sales slowed)