USA: Heavy drop in the “Philly Fed” index in May

PARIS, May 19 (Reuters) – Business conditions in the Philadelphia area deteriorated sharply in May, Thursday showed? the monthly survey of the local branch of the Federal Reserve.

The “Philly Fed” index fell to 2.6, the lowest since May 2020, after 17.6 in April when economists polled by Reuters on average forecast a much more limited decline to 16.0.

While the new orders component recovered to 22.1 from 17.8 in April, that of employment fell from 41.4 to 25.5, the lowest since May 2021.

The six-month outlook sub-index plunged to 2.5, the lowest since December 2008, after 8.2 in April.

That of prices paid fell to 78.9 against 84.6 a month earlier.

On Wall Street, futures, already on a downward trend, accentuated their losses after the publication of this indicator and that of weekly jobless claims in the United States.

(Written by Claude Chendjou, edited by Marc Angrand)

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