by Calculated Risk on 1/17/2013 01:44:00 PM

Catching up ... earlier from the Philly Fed: January Manufacturing Survey

Manufacturing activity declined moderately this month, according to firms responding to the January Business Outlook Survey. ... The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, decreased from a revised reading of 4.6 in December to ‐5.8 this month.

Labor market conditions at reporting firms deteriorated this month. The employment index, at ‐5.2, fell from ‐0.2 in December. ...

The survey’s future indicators suggest that firms expect recent declines to be temporary. The future general activity index increased from a revised reading of 23.7 to 29.2, its second consecutive monthly increase.
emphasis added

Earlier this week, the Empire State manufacturing survey also indicated contraction in January.

Click on graph for larger image.

Here is a graph comparing the regional Fed surveys and the ISM manufacturing index. The dashed green line is an average of the NY Fed (Empire State) and Philly Fed surveys through January. The ISM and total Fed surveys are through December.

The average of the Empire State and Philly Fed surveys decreased in January, and is back below zero.   This suggests another weak reading for the ISM manufacturing index.