The Philadelphia Federal Reserve's manufacturing index revealed that new orders have dropped to their lowest level since the pandemic began, potentially pressuring bond yields and the stock market. The overall business outlook index has plummeted to -26.4, significantly below the expected 2.2. This marks the lowest point since the collapse of Silicon Valley Bank in 2023, although there is an upward trend in payment prices.
The decline in new orders, a key indicator of future business activity, suggests potential significant downturns in the latter half of the year. This drop may signal early damage caused by tariffs. While this is just a single data point, it is not favorable news for the U.S. economy.
