A report released by the Federal Reserve Bank of Philadelphia on Thursday showed a continued contraction in regional manufacturing in the month of May, although the pace of contraction slowed by more than expected.
The Philly Fed said its diffusion index for current activity surged to a negative 10.4 in May from a negative 31.3 in April.
While a negative reading still indicates a contraction in regional manufacturing activity, economists had expected the index to show a more modest recovery to a negative 19.8.
The bigger than expected rebound came after the Philly Fed Index dropped to its lowest level since May 2020 in the previous month.
