Philly Fed Index Increases In May But Remains Negative
(RTTNews) - Thursday morning, the Federal Reserve Bank of Philadelphia released its report on manufacturing activity in the mid-Atlantic region in the month of May, showing that activity continued to contract albeit at a slower pace than in the previous month.
The report showed that the index of activity in the sector rose to a negative 15.6 in May from a negative 24.9 in April, with a negative reading indicating a contraction in the sector. Economists had expected the index to come in at a -19.0.
A rebound in shipments contributed to the slower than expected pace of contraction in the sector, with the shipments index rising to a positive 2.2 in May from a negative 8.0 in April.
The slower than expected contraction also reflected a slowdown in the pace of contraction in new orders, as the new orders index narrowed to a negative 3.7 in May from a negative 18.8 in the previous month.
The report also showed some improvement in employment, with the number of employees index rising to a negative 1.0 in May from a negative 11.1 in April.
Despite the overall weakness in current activity, the Philly Fed also noted that a significant share of the manufacturers continued to report price pressures and said more firms reported higher prices for their own products.
The prices paid index rose to 53.8 in May from 51.6 in April, while the prices received index edged up to 31.6 from 30.9 in the previous month.
Looking ahead, the future general activity index jumped to a seven-month high of 28.2 in May from a reading of 13.7 in April, indicating that the region’s manufacturing executives were more optimistic about future activity.
For comments and feedback: contact editorial@rttnews.com
Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved
Posted in Categories: Economy, Forex, Releases.
(No Ratings Yet)
Loading ...
