Philadelphia Fed Manufacturing Survey Rises Less than Expected in May

Mid-Atlantic Manufacturing Firms Expect Overall Growth Over Next 6 Months

Philadelphia, Penn. (PPD) — The Philadelphia Federal Reserve’s Manufacturing Business Outlook Survey rose less than expected in May, but off the low in April. Most manufacturing firms continue to see light at the end of the tunnel, the Federal Reserve Bank of Philadelphia reported.

Forecasts ranged from a low of -60.0 to a high of -25.0. The consensus forecast was -41.0. The headline rose 13 points to -43.1, off the 40-year low of -56.6 in April.

The percentage of firms reporting decreases this month (58%) still far exceeded the percentage reporting increases (15%), resulting in the third negative consecutive reading. The index for new orders rose 45 points out of an all-time low for the series last month, from -70.9 to -25.7.

Over 25% of the firms reported an increase in new orders, up from none in April, while 51% reported decreases, down from 71% last month.

The diffusion index for future general activity rose 7 points to 49.7. More than 62% of the firms expect increases in activity over the next six months, while 13% expect declines.