Manufacturing Activity Drops to Two-Year Low

Source: Federal Reserve Bank Philadelphia

Manufacturing activity continued to expand in May, albeit at a slower pace, hitting a two-year low. QQQ is down 0.55%, while SPY is down 0.89%.

• The diffusion index for current activity declined by 15 points to 2.6 in May, as most firms indicated no changes in current activity while 20% saw declines.
• The new orders index climbed four points to 22.1, while the current shipments index grew by 16 points to a 19-month high of 35.3.
• Firms recorded higher employment on balance, but the current employment index slipped 16 points to 25.5.
• The prices paid diffusion index fell by six points to 78.9, with over 81% of firms indicating higher input prices.
• The median inflation forecast stood at 6.5%, higher than the 5.0% forecast recorded in February.
• The diffusion index for future general activity fell to a 13-year low of 2.5, down from 8.2 the previous month.