Numbers: The Philadelphia Fed manufacturing index in May fell to -43.1 from -56.6 in April, the lowest level in forty years.
Any reading below zero indicates a deterioration in conditions. Economists polled by MarketWatch expected a reading of -40.
What happened: The survey found that 58% of businesses reported a decline in activity, while only 15% reported an increase.
The new orders index rose 45 points to -25.7. Indexed deliveries increased 44 points to -30.3. The employment index increased by 31 points to -15.3.
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Companies expect the current depression to last less than six months. The future activity index increased by 7 points to 49.7. More than 62% of companies expect an increase in activity over the next six months, while 13% expect a decrease.
Big picture: A similar New York Fed survey said conditions remained dismal, rebounding to -48.5 in May from -78.2 the previous month. The coronavirus pandemic continues to weigh heavily on manufacturing. The May rebound in regional surveys is partly due to the fact that companies say activity remains stable at zero instead of dropping sharply last month, according to economists.
Market reaction: US stock index futures United States They were under pressure when tension between the Trump administration and China erupted overnight. Wednesday, the Dow Jones Industrial Average
DJIA
He recovered 369 points to finish at 24,575.