Philadelphia-area manufacturing activity unexpectedly contracted in the month of September, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.<\/p>\n
The Philly Fed said its current general activity index slumped to a negative 9.9 in September from a positive 6.2 in August, with a negative reading indicating a contraction in regional manufacturing activity. Economists had expected the Philly Fed index to drop to a positive 2.8.<\/p>\n
The much bigger than expected decrease by the headline index partly reflected further contraction in new orders, as the new orders index tumbled to a negative 17.6 in September from a negative 5.1 in August.<\/p>\n
The shipments index also dove to a positive 8.8 in September from a positive 24.8 in August, indicating a notable slowdown in the pace of growth.<\/p>\n
The number of employees index also slid to a positive 12.0 in September from a positive 24.1 in August, although a positive reading still indicates job growth.<\/p>\n
The report also showed the prices paid index slumped to a positive 29.8 in September from a positive 43.6 in August, while the prices received index climbed to a positive 29.6 from a positive 23.3.<\/p>\n
Looking ahead, the Philly Fed said expectations for growth over the next six months were subdued, as the future general activity index improved but remained negative.<\/p>\n
The diffusion index for future general activity climbed to a negative 3.9 in September from a negative 10.6 in August, remaining negative for the fourth straight month. <\/p>\n