Philadelphia Fed Reports Mixed View of Manufacturi
Philadelphia, May 20-- Philadelphia-area manufacturers faced mixed conditions in May, as overall activity grew at a slower pace and employment posted its best increase since the early 1970s.
The Federal Reserve Bank of Philadelphia said that its business-conditions index, a gauge of the health of the region's manufacturing sector, dropped to a reading of 23.8 in May, versus the 32.5 level seen the month before and 24.2 in March.
Economists had expected a reading of 31.8. A positive reading in the survey denotes growth in activity.
"Although the general activity index from our survey fell this month, it has remained positive for 12 consecutive months," the bank said in a news release. "Manufacturing executives remain optimistic about growth in their sector over the next six months."
Within the report, the new-orders index declined to 18.3 from 26.1 in April, while the prices-paid index rose to 59.6 from 51.9 in April and prices received jumped from 13.7 in April to a 15-year high of 29.1 in May. The employment index came in at 22.6, up from 12.2 in April and the best reading since April 1973.
