Employment Reading Highest in Five Months
|Prior||Consensus Forecast||Forecast Range||Actual|
|General Business Conditions Index||8.5||9.3||5.8 — 11.0||16.6|
The Philadelphia Fed Manufacturing Business Outlook Survey rose sharply from 8.5 to 16.6 in May, nearly doubling the consensus forecast.
The regional manufacturing survey for the Mid-Atlantic follows the New York Fed’s Empire State Manufacturing Survey, which also nearly doubled the forecast for May. The results of both surveys may be early indicators of tariffs pushing domestic new orders higher.
More than 25% of the manufacturers reported increases in overall activity this month, while just 9% reported decreases. More than 41% of the firms expect activity to increase over the next six months, while 22% expect a decrease.
The employment diffusion index rose 4 points to 18.2, its highest reading in five months.