The Federal Reserve Bank (Fed) Philadelphia Branch has released its Mid-Atlantic Manufacturing Index, which dropped to -31.3 in April. This marks the lowest level since May 2020 and is below analysts’ expectations of -19.2, down from -23.2 in March.
The index is still moving below the 0 level, indicating that manufacturing in the Mid-Atlantic region is contracting. In fact, this marks the eighth consecutive month of decline.
Although new orders rose by 5.5 percentage points to -22.7 in April, they still remained below zero. Additionally, sentiment over the six-month business outlook stood at -1.5, suggesting that manufacturers in the region are not optimistic about future performance.
The weaker-than-expected manufacturing index in April is cause for concern among economists and investors alike, as it indicates that the manufacturing sector may be struggling in the Mid-Atlantic region. This could have broader implications for the US economy as a whole, as manufacturing is an important contributor to overall economic growth.