US: Philadelphia Fed Manufacturing Index drops to -13.7 in June vs. -14 expected
|The diffusion index for current general activity of the Federal Reserve Bank of Philadelphia's Manufacturing Survey dropped to -13.7 in June from -10.4 in May. This mark was above the market expectation of -14. It was the 10th consecutive negative reading.
According to the report, data “suggest continued overall declines in the region’s manufacturing sector this month. The indicators for current activity and new orders remained negative, while the index for shipments turned positive”. Regarding the survey’s future indexes, the data shows an improvement “but continued to suggest subdued expectations for growth over the next six months.”
Key takeaways from the report:
“The index for new orders declined 2 points to -11.0, the index’s 13th consecutive negative reading. The current shipments index rose 15 points to 9.9, its highest reading since January.”
“On balance, the firms reported mostly steady levels of employment. The employment index rose 8 points to a near-zero reading.”
“The prices paid diffusion index was little changed at 10.5.”
“The current prices received index rose 7 points from a three-year low in May to 0.1 in June, marking the index’s first increase since January.”
Market reaction:
The US Dollar pulled back after the release of US economic reports that also included Retail Sales and Jobless Claims. The DXY dropped to fresh daily lows below 102.90 and US Treasury yields fell further.
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