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May 21, 2026
A report released by the Federal Reserve Bank of Philadelphia on Thursday showed regional manufacturing activity weakened in May. The Philly Fed said its diffusion index for current general activity plummeted from a positive 26.7 in April to a negative 0.4 in May, with a negative reading indicating contraction.
The steep drop in the headline index partly reflected a significant downturn in new orders, as the new orders index dove from a positive 33.0 in April to a negative 1.7 in May. The shipments index also plunged from a positive 34.0 in April to a positive 4.9 in May, although the positive reading still indicates growth.
The report said the number of employees index rose from a negative 5.1 in April to a negative 2.8 in May, but the negative reading still suggests overall decline in employment. On the inflation front, the Philly Fed said both price indexes declined this month but remained above their long-run non-recession averages. The prices paid index tumbled from 59.3 in April to 47.9 in May, while the prices received index slumped from 33.5 in April to 26.3 in May. 05/21/2026 - 11:13:00 (RTTNews)
The Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits decreased in the week ending May 16th. Initial jobless claims dipped to 209,000, a decrease of 3,000 from the previous week's 212,000.
The less volatile four-week moving average also slipped to 202,500, a decrease of 1,500 from the previous week's average of 204,000. Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, rose by 6,000 to 1.782 million in the week ending May 9th. The four-week moving average of continuing claims still fell to 1,773,000, a decrease of 6,500 from the previous week's average of 1,779,500. 05/21/2026 - 10:08:00 (RTTNews)
Euro traded at 1.1585 against USD at 9:00 AM PST
Germany's private sector contracted in May amid a backdrop of weakening demand and high inflationary pressures. The flash composite output index fell from 48.4 in April to 48.6 in May. A score below 50.0 indicates contraction. The decline was centered on the service sector, where business activity decreased for the second month straight.
Meanwhile, factory output registered a fractional rise. The flash services Purchasing Managers' Index logged 47.8 in May, up from 46.9 in the previous month. Meanwhile, the manufacturing PMI declined from 51.4 in April to a four-month low of 49.9 in May. 05/21/2026 - 06:00:00 (RTTNews)
France's private sector contracted at the sharpest pace in five-and-a-half years in May. The flash composite output index dropped from 47.6 in the previous month to 43.5 in May. This was the lowest score since November 2020. The survey showed an accelerated decline in services activity accompanied by a fresh fall in manufacturing output.
The Purchasing Managers’ Index of services (PMI) dropped from 46.5 in the previous month to 42.9 in May. The score was seen at 46.6. The manufacturing PMI posted 48.9 compared to 52.8 in the prior month. 05/21/2026 - 05:06:00 (RTTNews)
British Pound traded at 1.3400 against USD at 9:00 AM PST
The UK private sector registered a renewed downturn in May amid the growing impact of the war in the Middle East. The flash composite output index fell from 52.6 in April to 48.5 in May. The index remained below the neutral 50.0 mark for the first time since April 2025.
The downturn in the British private sector was driven by a renewed fall in service sector output, which contrasted with a stronger upturn in manufacturing production. The services business activity index dropped from 52.7 in April to a 64-month low of 47.9 in May.
The fall in services activity was attributed to greater economic hesitancy and weaker investment sentiment among clients, alongside delayed consumer spending decisions in response to the Middle East war.
On the other hand, goods producers experienced a temporary uptick in demand amid customer front-loading to beat price hikes and potential supply disruptions. The manufacturing PMI held steady at 53.7.
Total new orders received by the UK private sector dropped slightly in May, and employment levels and backlogs declined further, signaling a lack of pressure on business capacity.
On the price front, input price inflation eased marginally, though it remained well above its long-run average. Overall inflation was linked to rising oil prices and transportation bills, alongside higher energy and raw material costs. Selling price inflation also moderated somewhat since April. 05/21/2026 - 10:12:00 (RTTNews)
Hong Kong's consumer price inflation held steady for the second month straight in April. The consumer price index (CPI) climbed 1.7% year-over-year in April, the same as in the previous two months. Inflation based on transportation rose from 3.9% to 4.3% amid higher fuel costs, while food inflation moderated from 0.9% to 0.7%. Utility charges grew at a faster pace of 5.5%, and housing costs increased at a stable pace of 1.0%. 05/21/2026 - 07:26:00 (RTTNews)
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