Philly Fed Business Conditions For May Come In At 15.40 vs. 15.00 Est; Prior 16.60

The Business Conditions Index continues its swing, but overall there is room for hope in the near future as businesses prepare for the summer months and the Northeast comes back to life from its long winter freeze.

The 5-Year Business Conditions Index shows the monthly percentage change and were continuing the contraction in conditions, though at a slower rate:

Stepping back and looking over 10 years, it becomes quite clear that things aren't as bad as first shown:

The main focus for participants as the year rolls on will be the behavior of the yield curve and just how much the FED actually removes itself from regular market interaction. With the passage of the Affordable Care Act and protests around America for increased minimum wages, it doesn't seem likely we will be returning to the very favorable business conditions as we saw in '09/'10 before 2015.