Washington (awp/afp) – The index measuring manufacturing activity in the Philadelphia region in the northeastern United States fell in May to its lowest level since May 2020, according to data from the regional branch of the American Central Bank (Fed) published on Thursday.
The general index measuring activity fell by 15 points, to settle at 2.6 points (-10 points), according to this survey carried out among industrialists in the region. The index remains above zero, which means that activity is still growing, but at a very slow pace.
Analysts had not expected such a slowdown, and expected a decline in the index of 1.1 points to 16.5 points.
In detail, the index measuring new orders rose faster in May than in April, as did that measuring shipments, which even climbed to its highest level since October 2020.
On the other hand, the index measuring employment fell, but remained positive, signaling a less strong increase than last month in the workforce.
As for prices, they follow the rhythm of inflation, and moderate a little after the record of April – the index was at its highest for 43 years – but remain at a very high level.
More than half of the companies surveyed said they had raised the prices of their products.
Measured in a heavily industrialized region of the northeastern United States, this leading indicator is considered a good barometer of the evolution of American economic activity. It measures the perception that manufacturers in eastern Pennsylvania, Delaware and southern New Jersey have of the economic situation, through the activity of their company.
The survey was conducted from May 9 to May 16.
Inflation slowed down a little in April in the United States, to 8.3% over one year, according to the Commerce Department’s CPI index published on 11th May, but remains very close to its highest level for 40 years.
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