Philly Fed Manufacturing Index showed modest expansion

Thursday, May 21 2015

Philly Fed Manufacturing Index decrease do 7.5 points, this missing expectations on an incline to 8.1 points. The indicators for general activity and new orders both suggest expansion, but at a continued modest pace. Firms reported an increase in employment this month. A notable share of respondents continued to report downward price pressures for inputs. For their own manufactured products, more firms reported price decreases than reported price increases, although the majority reported steady prices. Indicators reflecting firms’ expectations for the next six months were near steady this month, and firms remained optimistic about future employment growth.

Existing Home Sales data was also below expectations showing annual rate of 5.04 million, below expected rate of 5.23 million. Lawrence Yun, NAR chief economist, says sales in April failed to keep pace with the robust gain seen in March. "April's setback is the result of lagging supply relative to demand and the upward pressure it's putting on prices," he said. "However, the overall data and feedback we're hearing from Realtors continues to point to elevated levels of buying interest compared to a year ago. With low interest rates and job growth, more buyers will be encouraged to enter the market unless prices accelerate even higher in relation to incomes."

Data did not have any major impact on the markets, with USD mostly lower against its major rivals. Euro is currently being traded few points above 1.1130 level, Sterling is slightly above 1.5670 area, while Aussie is at 0.7880 level. Later today, Existing Home Sales and Philly Fed Manufacturing Index data is scheduled for a release.

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