US May Philly Fed business index -0.4 vs +18.0 expected

• Prior was +26.7

Details:

• New orders xx vs 33.0 prior
• Shipments xx vs 34.0 prior
• Unfilled orders xx vs -10.2 prior
• Delivery times xx vs 1.7 prior
• Inventories xx vs -1.9 prior
• Prices paid xx vs 59.3 prior
• Prices received xx vs 33.5 prior
• Number of employees xx vs -5.1 prior
• Average employee workweek xx vs 7.7 prior

Six-months from now indicators:

• 6 month index xx vs 40.8 prior
• Capex index 6-month forward xx vs 35.2 prior
• New orders xx vs 45.7 prior
• Shipments xx vs 40.8 prior
• Unfilled orders xx vs -4.1 prior
• Delivery times xx vs 2.7 prior
• Inventories xx vs -0.7 prior
• Prices paid xx vs 50.2 prior
• Prices received xx vs 50.2 prior
• Number of employees xx vs 35.9 prior
• Average employee workweek xx vs 30.3 prior

Manufacturing activity in the region weakened overall. The survey’s indicators for general activity, new orders, and shipments all fell sharply this month. The employment index ticked up but remained negative, continuing to suggest overall declines in employment. Both price indexes declined this month but remained elevated. The firms continue to expect overall growth over the next six months, and most future indicators rose this month from already elevated readings.

What is the Philly Fed Index?

The Philadelphia Fed Manufacturing Survey, also known as the Philly Fed Index, is one of the earliest monthly indicators of manufacturing sector health in the United States. Published by the Federal Reserve Bank of Philadelphia, it surveys manufacturers in the Third Federal Reserve District, covering eastern Pennsylvania, southern New Jersey, and Delaware. Readings above zero indicate expanding activity, while readings below zero signal contraction. The survey is closely watched by economists and market participants because it often serves as a leading indicator for the national ISM Manufacturing Index released later each month.

This article was written by Giuseppe Dellamotta at investinglive.com.