After the stunningly surprising upside surge in April, The Empire Fed Manufacturing Survey has collapsed back to reality in May, crashing 42.6 points to -31.8 from +10.8 (dramatically worse than the -19.0 expected). Outside of the COVID lockdowns, this is the biggest MoM drop ever...

The swings vs expectations is clear in the chart below... April was a total headfake!

Most problematically, Stagflation is screaming loudly again...

Not exactly what The Fed wants to see and this is just the first of several regional Fed bank factory indexes set for release in the coming weeks.

April was a total headfake!
{ai:summary}Manufacturing survey hits all-time low, falling drastically worse than expected with the biggest MoM drop ever. The orders index slides, shipments plummet, and employment gauge indicates a decrease in headcount. #economy

Empire Fed Manufacturing Survey Collapsed In April - Biggest Drop Ever (Ex-COVID)

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