Philly Fed Index contracts in May

Manufacturing activity in Philadelphia's area surprisingly contracted on May largely due to a notable 7.9% fall in new orders and a 8.5% drop in shipments, a survey revealed by the Federal Reserve Bank of Philadelphia showed on Thursday. The diffusion Philly Fed index of current activity dropped from 1.3 in April to a negative 5.2 in May, while it was expected to end up in a positive 2.2.