Philly Fed Index Unexpectedly Turns Negative In May

(RTTNews) - A report released by the Federal Reserve Bank of Philadelphia on Thursday showed regional manufacturing activity unexpectedly weakened in the month of May.

The Philly Fed said its diffusion index for current general activity plummeted to a negative 0.4 in May from a positive 26.7 in April, with a negative reading indicating contraction. Economists had expected the index to pull back to a positive 15.0.

Meanwhile, the Philly Fed said firms continue to expect overall growth over the next six months, with the diffusion index for future general activity surging to 53.2 in May from 40.8 in April and reaching its highest reading since June 2021