Philadelphia Fed
Philadelphia Fed nonmanufacturing index
  • Prior month -22.8
  • Philadelphia Fed nonmanufacturing Index -16.0 versus -22.8 last month
  • Firm-level business activity index -9.5 versus -16.2 in April. This is the 3rd consecutive negative reading.
  • new orders 2.7 versus -23.9 April. This was the 1st positive reading since February.
  • full-time employment 14.9 in May versus 11.5 in April. Part-time employment rose 3 points but remain negative at -1.3.
  • Average work week increase 5 points to 5.6
  • Price indicator readings suggest continued increases in prices for inputs and the firms’ own goods and services. The prices paid index increased 5 points to 40.3 in May.
  • Regarding prices for the firms’ own goods and services, the prices received index edged up 1 point to 21.6 this month.
  • wage and benefit cost index 35.3 in May versus 39.7 in April

The Philly Fed's May Nonmanufacturing Business Outlook Survey indicates a relatively sluggish non-manufacturing sector, with slight improvements in some areas but still overall weakness. The general firm-level activity index, although slightly improved, continued to signal contraction. Both new orders and sales/revenues indices registered their first positive readings since February, indicating a subtle upturn. While there was reported growth in full-time employment, part-time employment remained in a negative territory. The prices paid and received indexes both rose slightly, hinting at continued price increases in both inputs and outputs. Firms projected their own prices to increase by 4.0%, while expecting a 5.0% inflation

rate for U.S. consumers over the next year. Despite the ongoing challenges, firms remained optimistic about their growth and the regional activity over the next six months.