Philadelphia factory activity slows sharply in May

Manufacturing activity in Philadelphia has slowed markedly in May from a month earlier, the latest data showed.

The Philadelphia Fed Manufacturing Index was reported at a reading of 4.5 in May down from a two-year high of 15.5 in April.

In comparison, market consensus had pointed to a lesser slowdown in activity (a reading of 8).

In May, the gauge of new orders dropped to -7.9 from 12.2 in April, which has been its first negative reading since February.

Meanwhile, the gauge of shipments retreated to -1.2 from 19.1 in April, which marked its first negative reading since January.

On the price front, both price gauges reflected overall increases in price levels, but they still remained below their long-run averages, Federal Reserve Bank of Philadelphia said.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was last edging up 0.14% on the day to 104.429.

The index has rebounded from a five-week low of 104.080, which it registered earlier during the session.