"The survey’s broadest measure of manufacturing conditions, the
diffusion index of current activity, decreased from a reading -5.8 in
January to -12.5 this month (see Chart). The demand for manufactured
goods also showed slight declines this month: The new orders index
declined from a reading of -4.3 in January to -7.8 in February. Despite
negative readings for general activity and new orders, the shipments
index showed improvement: The index remained positive and edged slightly
higher to 2.4. The percentage of firms reporting increased shipments
(25 percent) was slightly greater than the percentage reporting declines
(22 percent)."
The diffusion index also suggests a further decline for stocks:
Stocks are still down, but have stabilized with the Dow off about 55 points.
