• Th Philly Fed manufacturing index came in well weaker than expected at 2.6 in May. 
• The US dollar saw some monetary weakness with the DXY eyeing session lows in the 103.20s. 

According to a report from the Federal Reserve Bank of Philadelphia released on Thursday, the headline Manufacturing Activity Index of the Manufacturing Business Outlook Survey slid to 2.6 in May from 17.6 in March. That was well below the expected decline to 16.0 and was the lowest reading since May 2020.

Subindices:

• Six-month Business Conditions fell to 2.5 from 8.2 in April, the lowest since December 2008. 
• CAPEX fell to 9.6 from 19.9, its lowest since February 2016. 
• Employment fell to 25.5 from 41.4, its lowest since May 2021. 
• New Orders rose to 22.1 from 17.8. 
• Prices Paid fell to 78.9 from 84.60. 

Market Reaction

The buck saw some very minor weakness on the report, with the DXY eyeing a test of session lows around 103.20.