The U.S. regional manufacturing gauge fell to -0.4 in May from 26.7, far below the 17.6 estimate, signaling a sharp slowdown in factory activity.
The Philadelphia Fed Factory Index, a regional measure of U.S. manufacturing conditions published by the Federal Reserve Bank of Philadelphia, fell to -0.4 in May. That was down from 26.7 in the previous reading and well below the 17.6 estimate. A negative reading indicates contraction in manufacturing activity in the region, making the result a notable downside surprise for markets tracking U.S. economic momentum and risk sentiment.