US: US: Philly Fed Manufacturing Index declines to 17.2 in July vs. 21 expected

The headline Diffusion Index of the Federal Reserve Bank of Philadelphia's Manufacturing Business Outlook Survey improved dropped to 17.2 in July from 24.1 in June. This print came in worse than the market expectation of 21.

Key takeaways

"The index for new orders decreased from 23.0 to 19.0. Over 34% of the firms reported increases in new orders this month, while 15% reported decreases."

"The current shipments index fell 6 points to 9.4 in August."

"On balance, the firms reported increases in manufacturing employment for the second consecutive month, but the current employment index fell 11 points to 9.0 this month."

"The respondents remained optimistic about growth over the next six months. The diffusion index for future general activity edged 3 points higher to 38.8 in August."

Market reaction

The US Dollar Index edged higher in the last minutes and is now gaining 0.1% on the day at 93.10.