Forexpros – Manufacturing activity in the Philadelphia-region contracted for the first time in eight months in May, adding to concerns over the pace of the U.S. economic recovery, official data showed on Thursday.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index dropped by 14.3 points to minus 5.8 in May from April’s reading of 8.5.
Analysts had expected the index to rise by 1.5 points to 10.0 in May.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
Indicators for new orders and employment also suggested slight declines from April.
Input price pressures were less in evidence this month, and for the first time in nine months, more firms reported price declines for their products than reported increases.
The survey’s indicators of future activity remained positive but weakened considerably from April.
Following the release of the data, the U.S. dollar remained higher against the euro, with EUR/USD shedding 0.15% to trade at 1.2697.
Meanwhile, U.S. equity markets added to losses after the open. The Dow Jones Industrial Average slumped 0.45%, the S&P 500 index fell 0.5%, while the Nasdaq Composite index shed 0.6%.
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