WASHINGTON (dpa-AFX) - Manufacturing activity in the Philadelphia area has weakened in the month of August, the Federal Reserve Bank of Philadelphia revealed in a report released on Thursday.
The Philly Fed said its diffusion index for current general activity tumbled to a negative 0.3 in August from a positive 15.9 in July, with a negative reading indicating contraction. Economists had expected the index to decrease to a positive 7.0.
The much bigger than expected decrease by the headline index partly reflected a downturn by new orders, as the new orders plummeted to a negative 1.9 in August from a positive 18.4 in July.
The report also showed a steep drop by the shipments index, which plunged to 4.5 in August from 23.7 in July but remained positive.
The number of employees index also slumped to 5.9 in August from 10.3 in July, although the Philly Fed said firms continued to report overall increases in employment.
Meanwhile, the Philly Fed said the prices paid index jumped to 66.8 in August from 58.8 in July, reaching its highest level since May 2022. The prices received index also inched up to 36.1 in August from 34.8 in July.
The report said firms continue to expect growth over the next six months, with the diffusion index for future general activity climbing to 25.0 in August from 21.5 in July.
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