Manufacturing activity in the mid-Atlantic region increased at a slower rate in the month of July, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.
The Philly Fed said its broadest measure of manufacturing conditions, the diffusion index of current activity, tumbled to 5.7 in July from 15.2 in June.
While a positive reading indicates a continued increase in regional manufacturing activity, the index had been expected to show a much more modest decrease to 12.0.
The bigger than expected decrease by the headline index partly reflected a slowdown in the pace of growth in demand for manufactured goods, as the new orders index dropped to 7.1 in July from 15.2 in June.
The shipments index also showed a notable monthly decrease, slumping to 4.4 in July from 14.3 in the previous month.
The report also said the number of employees index dropped to a negative 0.4 in July from a positive 4.8 in June, suggesting employment was roughly flat.
The prices received index also fell to 1.7 in July from 4.8 in June, while the prices paid index rose to 20.2 from 17.2.
Looking ahead, the Philly Fed said most of the survey’s broad indicators of future growth edged slightly higher during the month.
The future general activity index crept up to 41.5 in July from 39.7 in June, reaching its highest reading since January.
On Wednesday, the New York Fed released a separate report showing that business conditions for New York manufacturers have improved slightly in the month of July.
The report said the general business conditions index climbed to a positive 3.9 in July from a negative 2.0 in June. The index was expected to rise to a positive 3.0.
The New York Fed said the index has moved in a see-saw pattern around zero for the past four months, indicating that business activity remains subdued.
The material has been provided by InstaForex Company – www.instaforex.com