The region's manufacturing sector contracted in May, as the general business conditions index slipped to negative 1.8 from negative 1.6 in April, this month's Federal Reserve Bank of Philadelphia Report on Business indicates.
Economists surveyed by Thomson Reuters predicted a reading of 3.5 for the index.
The prices paid index was 15.7, up from 13.2 last month, new orders index slid to negative 1.9 from zero, shipments increased to negative 0.5 from negative 10.8, the unfilled orders index widened to negative 8.8 from negative 6.3, the delivery times index fell to negative 14.6 from negative 9.9, inventories improved to negative 2.5 from negative 20.5, prices received rose to 14.8 from 7.4, the number of employees index climbed to negative 3.3 from negative 18.5, and the average employee workweek narrowed to negative 15.1 from negative 16.2.
The six months from now general business conditions index fell to 36.1 from 42.2 in last month's survey, the prices paid index was at 24.8, off from 36.7 in the prior survey, and the prices received index slumped to 10.5 from 22.6. The capital expenditures index gained to 23.6 from 12.7 last month. The number of employees index decreased to 12.0 from 14.2, while the average workweek index rose to 13.7 from 12.5. The new orders index slid to 39.9 from 48.7, shipments declined to 37.9 from 41.0; and the unfilled orders index dropped to 14.5 from 15.8. The delivery times index reversed to negative 2.2 from positive 0.5, and inventories widened to negative 12.0 from negative 3.9.
