Philly Fed manufacturing index falls in May

philadelphia 76ers

(Scott Halleran/Getty Images)

The latest reading on manufacturing activity from the Philadelphia Federal Reserve fell in May, to 7.5 in April.

Expectations were for the reading to come in at 8.

In its release, the Philly Fed said, "Indicators for general activity, new orders, and shipments were positive but remain at low readings. Employment increased at the reporting firms, but the employment index moderated compared with April. Firms reported continued price reductions in May, with indicators for prices of inputs and the firms’ own products remaining negative. The survey’s indicators of future activity suggest that firms expect continuing growth in the manufacturing sector over the next six months."

In May, the Philly Fed asked firms about their hiring plans and struggles, with 51% of firms saying that they plan to increase employment over the next year, with just 10% saying they plan to reduce their number of workers.

The Philly Fed also asked firms whether they have enough qualified workers, and at 34%, "No" was the most popular answer.

Here's the latest chart from the Philly Fed, showing that while business conditions are getting better they are at low readings, while expectations are also below where they were for most of last year.

bos0515chart1

(Philly Fed)

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