A larger number of eyes were looking at regional Fed surveys this week, due to the weaker-than-expected Philadelphia Fed number from last week. The Richmond Fed index fell more than expected, from +14 in April to +4 in May, as shipments fell; however, employment rose strongly.
Durable goods orders were generally in line with consensus for April—up +0.2% on the month. However, the goods orders less transports (aka ‘key components version’) was weaker than anticipated (down -0.6% versus a forecast +0.8%). ‘Core’ orders, which excluded non-defensive items and aircraft fell by almost 2%. These figures are poorer, not dramatically so, but still point to a possible soft spot in economic growth during the past few months. Read more