A survey from the Federal Reserve Bank of Philadelphia shows that regional manufacturing expanded only marginally in May, recording the weakest growth in two years. John Carney reported the numbers for Breitbart.
The Business Outlook Survey index for current general activity went down to 2.6 in May compared with 17.6 in April. The survey covers manufacturing firms located in the Third Federal Reserve District, encompassing eastern Pa., southern N.J., and Del.
No change in current activity was reported by 57 percent of firms polled; 22 percent reported more activity; 20 percent reporting a decline.
Demand indicators, however, were positive, increasing to 22.1 in May from 17.8 in April. The shipment index also rose to 35.3 from 19.1.
Supply-chain constraints continue to plague manufacturers as the index of delivery times fell to 17.5 in May. The indices of unfilled orders climbed to 17.9 from 5.7.
Inflation pressures are still high, despite a slight reduction in the prices paid index, which dropped to 78.9 in May from 84.6 in April. The prices received index also fell, going to 51.7 from 55.0.
Meanwhile the estimate for prices a year from now is at 6.5 percent.