The region's manufacturing sector expanded at a slower pace in May, as the general business conditions index dropped to 6.7 from 7.5 in April, this month's Federal Reserve Bank of Philadelphia Report on Business indicates.
Economists surveyed by Thomson Reuters predicted a reading of 8.2 for the index.
The prices paid index was negative 14.2, down from negative 7.5 last month, new orders index rose to 4.0 from 0.7, shipments improved to 1.0 from negative 1.8, the unfilled orders index gained to negative 1.1 from negative 7.1, the delivery times index dropped to negative 3.6 from 0.5, inventories dropped to negative 1.8 from 1.5, prices received dropped to negative 5.4 from negative 4.1, the number of employees index fell to 6.7 from 11.5, and the average employee workweek decreased to negative 5.6 from 3.4.
The six months from now general business conditions index fell to 33.9 from 35.5 in last month's survey, the prices paid index was at 20.9, up from 19.9 in the prior survey, and the prices received index rose to 19.4 from 10.7. The capital expenditures index increased to 16.8 from 15.8 last month. The number of employees index grew to 21.5 from 20.6, while the average workweek index increased to positive 9.3 from 2.4. The new orders index increased to 31.7 from 30.8; shipments dropped to 32.0 from 34.0; and the unfilled orders index fell to 15.9 from 16.6. The delivery times index increased to 5.4 from negative 0.2, and inventories increased to negative 4.0 from negative 5.4.
