The Philadelphia Fed Manufacturing Index fell to -0.4 in May 2026 from 26.7 in the prior month and against market forecasts of 18. The reading pointed to a marginal contraction in regional manufacturing activity after a solid expansion in the month before. The shipments index declined 29 points to 4.9, and the new orders index fell 35 points to -1.7, its lowest reading since April 2025. The employment index improved by 2 points to -2.8 in May but remained in negative territory for the third time in four months, signaling continued job shedding. Both price indexes declined this month but remained above their long-run averages. The current prices paid index fell 11 points to 47.9 in May, while prices received index deceased 7 points to 26.3. Looking ahead, firms continued to anticipate overall growth in the coming six months, with most future indicators climbing from already elevated levels.