Philly Fed Index Shows a Slowing of Expansion

Although manufacturing in the Philadelphia region expanded in May for the fifth straight month, it did so at a slower pace than expected.

The Federal Reserve Bank of Philadelphia said Thursday its general economic index fell to 9.1 in May from 12.3 the month before. Readings above zero indicate expansion.

Manufacturing accounts for about 20% of U.S. economic production and is one of trucking’s largest and most important customer segments.

Analysts were expecting a reading of 12, Bloomberg reported.

The report also found that the current new orders index fell to 10.2 from 12.8, while the current shipments index increased to 17.3 in May from 16.4.

The index of future general activity increased to 51.3 from 48.3 in April, leaving with Fed to say in its report that the “region's manufacturing sector is continuing its recovery.”

This Fed’s territory includes eastern Pennsylvania and the cities of Harrisburg, Scranton and Wilkes-Barre as well as Philadelphia; southern New Jersey including Trenton; plus Wilmington and Dover in Delaware.

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