GoldPrice

The Richmond Fed manufacturing index saw a major drop in February, diving from 20 points to -2 vs. 10 points expected. The reading comes after January unexpectedly rose from -5 to 20. As a measurement of business activity in the region, the survey may indicate that the January surge was anomalous, with a dearth of new orders pulling the numbers back down in February.

The IHS Markit’s manufacturing PMI fell to 50.8 vs. 51.9 in January, failing to reach the 51.5 reading forecast by the market. The services and composite PMIs fell below 50 to contraction territory, with services posting the lowest reading in six years.

Initial claims for state unemployment benefits rose from 206,000 to 210,000 for the week ended February 15, according to the Labor Department. Data for the previous week was revised upward by 1,000 claims. Overall, the labor market appears to be in good health, with low layoffs nationwide following increased hiring last month.

The Philadelphia Federal Reserve manufacturing index rose 20 points to 36.7 during February, beating the expected reading of just 10 points. The index measures business conditions in the region, and points to renewed strength for Q1 2020 following a year of weak results.

US producer prices saw the highest gains in over a year last month, driven by increases in services like healthcare and hotel accommodation. The producer price index (PPI) outperformed yearly expectations of 1.6% gain, rising 2.1% according to the Labor Department report released on Wednesday.

Homebuilding starts fell less than expected in January, dipping 3.6% to 1.567 million units vs. 1.45 million expected. Permits, an indicator of future construction, rose near the highest point in 13 years, indicating upcoming strength in the housing market.