Richmond Fed Business Survey Shockingly Rises... Here's Why

  • Written by Zero Hedge
  • Published in Economics
Richmond Fed Business Survey Shockingly Rises... Here's Why

The Richmond Fed Business Survey smashed expectations today - printing an expansionary +2, from February's -2 - massively better than the -13 print expected...

Source: Bloomberg

The reason for this shocking beat is not optimism... or a sign of a corner being turned... it is purely technical and exposes the farce of these 'soft' surveys.

The headline survey number was buoyed dramatically by a surge in supplier delivery times (which are normally a sign of improving demand) but in this case are caused by the abrupt halt of global supply chains - not a bullish thing at all.

Source: Bloomberg

Additionally, as is very clear, expectations for new orders collapsed to a record low.

Source: Bloomberg

So, the lesson is - don't just trust the headlines. Richmond Fed survey expectations are a bloodbath....

Tyler Durden Tue, 03/24/2020 - 10:27

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