US Philadelphia Fed manufacturing activity weakens in May

By Ovunc Kutlu

ISTANBUL (AA) - The Philadelphia Federal Reserve in the US announced Thursday its manufacturing index fell in May, indicating a weakening in the sector.

The index for current general activity declined 11 points to 4.5 in May from 15.5 in April.

The expectation was for the index to come in at 7.7.

"The index for new orders declined from 12.2 to -7.9, its first negative reading since February, and the shipments index fell from 19.1 to -1.2, its first negative reading since January," the Philadelphia Fed said in a report.

A level above zero indicates improving conditions, while anything below that shows worsening conditions.

"More than 29 percent of the firms reported increases in general activity this month, down from 38 percent last month, while 25 percent reported decreases, up from 22 percent; 46 percent reported no change, up from 40 percent," said the report.

The share of firms expecting increases in activity over the next six months was 45%, exceeding the share expecting decreases with 12%, while 43% expect no change, according to the report.