A worker in the mid-Atlantic manufacturing sector works with raw aluminum materials. (PHOTO: REUTERS)
The Manufacturing Business Outlook Survey (MBOS), the Philadelphia Federal Reserve’s gauge in the mid-Atlantic region, fell slightly deeper into contraction in May. The survey posted a negative reading of 1.8 in May, down from another negative reading of 1.6.
The Wall Street expectation was for a positive reading of 3.5.
The Manufacturing Business Outlook Survey’s employment index displayed similar weaknesses in May, despite improving 15 points this month. The employment index posted its fifth consecutive negative reading at -3.3. Further, more than 69% of the firms reported no change in employment, but the percentage reporting decreases (17%) far exceeded the percentage reporting increases (14%).
After a sharp drop last month, the average workweek index ticked up 1 point but remained negative.
Source: Philadelphia Federal Reserve
The latest regional report follows the monthly Empire State Manufacturing Survey, which is conducted by the New York Federal Reserve in the Northeast. It also plummeted back into contraction after a brief monthly positive showing.
