US Philadelphia Fed Manufacturing Index drops to -13.5 in September vs. -0.7 expected

• Philadelphia Fed Manufacturing Index dropped to -13.5 in September.
• US Dollar Index stays in positive territory above 105.50.

The Diffusion Index for current general activity of the Federal Reserve Bank of Philadelphia’s Manufacturing Survey declined sharply to -13.5 in September from 12 in August. This reading came in much worse than the market expectation of -0.7.

Further detail of the publication revealed that the Prices Paid Index rose to 25.7 from 20.8, the Employment Index improved slightly to -5.7 from -6 and the Six-month Business Conditions Index rose to 11.1 from 3.9.

Market reaction

These figures don’t seem to be having a noticeable impact on the US Dollar’s (USD) performance against its major rivals. As of writing, the US Dollar Index was up 0.25% on the day at 105.70.