Philadelphia Manufacturing Activity Contracts

Manufacturing activity in the Philadelphia region contracted in May, for the first time in three months, the Federal Reserve Bank of Philadelphia said Thursday.

The regional Fed’s index fell to a reading of minus 5.2, from a 1.3 reading in April.

Readings below zero indicate contraction, while those above show expansion.

The reading was well below economists’ median forecast of 2, Bloomberg News reported.

The Philadelphia Fed surveys about 100 manufacturers for the index in eastern Pennsylvania, Delaware and southern New Jersey.