Philly Fed Index Jumps More Than Expected In May

(RTTNews) - Philadelphia-area manufacturing activity remained weak in the month of May, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.

The Philly Fed said its diffusion index for current general activity jumped to a negative 4.0 in May from a negative 26.4 in April, but a negative reading still indicates contraction. Economists had expected the index to climb to a negative 11.0.

Looking ahead, the Philly Fed said firms continued to expect growth over the next six months, with the diffusion index for future general activity soaring to 47.2 in May from 6.9 in April.