US: Philadelphia Fed Manufacturing Index drops to -12.3 in July vs. 0 expected

• Philadelphia Fed Manufacturing Index fell sharply in July.
• US Dollar Index stays deep in negative territory near 106.50.

The Federal Reserve Bank of Philadelphia's Manufacturing Business Outlook Survey's diffusion index for current general activity declined to -12.3 in July from -3.3 in June. This print missed the market expectation of 0 by a wide margin.

Additional takeaways

"The index for new orders declined for the second consecutive month, from -12.4 to -24.8."

"The current shipments index rose from 10.8 to 14.8. The indexes for current inventories and unfilled orders were negative, at -9.3 and -10.4, respectively."

"On balance, the firms continued to report increases in employment, but the employment index declined 9 points to 19.4, its lowest reading since May 2021."

Market reaction

The greenback struggles to find demand after this report and the US Dollar Index was last seen losing 0.5% on the day at 106.50.