Weakness in Philadelphia-area manufacturing activity continues in May

The Manufacturing Business Outlook Survey, released by the Federal Reserve Bank of Philadelphia on Thursday, revealed the weakness in the region's manufacturing activity continued in May.

According to the survey, the diffusion index for current general activity rose from its 40-year low of -56.6 in April to -43.1 this month.

Economists had forecast the index to increase to -41.5.

A reading above 0 signals expansion, while a reading below 0 indicates contraction.

According to the report, the indexes for new orders surged 45 points out of an all-time low for the series last month, from -70.9 to -25.7. The current shipments index climbed 44 points out of an all-time low last month, from -74.1 to -30.3. The current employment index increased 31 points to -15.3, and the average workweek index rose 47 points to -7.1. Elsewhere, unfilled orders held steady at -13.7, while delivery times dropped 11 points to -6.7, suggesting shorter delivery times. On the price front, prices paid index increased 13 points to 3.2, while prices received index rose 8 points to -3.1, its second consecutive negative reading.