BREAKING: The Philadelphia Fed Manufacturing index dropped 5.6 points in March, to 12.5, its 2nd consecutive monthly decline. 6-month outlook for new orders fell by 30.8 points, to 2.3, the lowest in 3 years. This marks the third-largest drop in history, only behind the 2008 Financial Crisis and December 1973. Furthermore, 6-month business outlook dropped ~40 points to its lowest since January 2024. All while prices paid rose 7.8 points, to 48.3, the highest since July 2022. This is further evidence of weakening economic activity with rising prices. Stagflation has arrived.