Philadelphia Fed Survey: Factory Activity Declines Modestly

May 19, 2016
Bottom Line: Manufacturing activity of mid-Atlantic based businesses shrank for the 2nd consecutive month. Slightly weaker than the Empire State Manufacturing Survey, -3.8% vs. -3.4% on an ISM weighted basis, it suggests that the early outlook for the national ISM Manufacturing Survey, to be reported on June 1, has a negative bias. The Philadelphia Fed Index FELL by 0.2 points in May to -1.8%, compared with market expectations for a small increase to 3.0%. This indicates that manufacturing activity in the mid-Atlantic region contracted modestly. On an ISM-weighted basis, the index also deteriorated modestly, indicating that the details were in line with the headline figure. New Orders decreased modestly by 1.9%, their first decline in the past 3 months. Shipments decreased by 0.5%, their 2nd consecutive decline. Unfilled Orders fell moderately while Inventories dropped, their 11th consecutive decline. Employment decreased modestly by 3.3% for the fifth straight month. Prices Paid accelerated modestly. The 6-Month Outlook deteriorated modestly.
Article by contingentmacro