Mid-Atlantic factory activity at 2-year low, Philadelphia Fed says

div classBodysc17zpet90 cdBBJodivpReuters – Factory output growth in the U.S. MidAtlantic region decelerated far more than expected in May, and the business outlook for the next six months is the weakest in more than 13 years, a regional Federal Reserve bank survey showed Thursday.p

pThe Philadelphia Feds benchmark manufacturing index slumped to 2.6 this month from 17.6 in April, well shy of the expectation for a reading of 16 among economists polled by Reuters. That was the lowest level in two years.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pA reading above zero indicates expansion.p

pReadings of employment and inflation both eased, with the employment index hitting the lowest in a year. The prices paid component was the lowest in three months but remained historically high.p

pThe outlook for business over the next six months slumped to the lowest level since December 2008, at the height of the global financial crisis.p

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pp Reporting By Dan Burns Editing by Chizu Nomiyamap

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