(Reuters) - The steeper-than-expected drop in the Philadelphia Federal Reserve's gauge on current U.S. Mid-Atlantic business activity in April may be temporary due to a sharp pickup in its six-month outlook index, a regional central bank analyst said on Thursday.
"Any short-term decline may be temporary," Michael Trebing, senior economic analyst at the Philadelphia Fed during a conference call with reporters said of the April data.
The Philadelphia Fed's business conditions index fell to -1.6 in April from 12.4 in March. Analysts polled by Reuters had expected a reading of 8.9.
March's positive reading snapped a six-month streak of negative figures.
The survey's employment index fell to -18.5, the lowest level since July 2009, from March's -1.1, while its new orders measure dropped to zero from 15.7 which was the highest since November 2014.
"There is no evidence it's related to the Easter holiday," Trebing said of the April decline in current activities.
While measures on current activities hit a setback in April, the six-month outlook index jumped to 42.2, the strongest since January 2015, from 28.8 in March.