Investing.com - Manufacturing activity in the Philadelphia-region contracted unexpectedly this month, but indicators of future activity indicated that the slowdown will be temporary, according to data released on Thursday.
The Federal Reserve Bank of Philadelphia said its manufacturing index fell to -1.6 this month from March’s reading of 12.4.
Economists had expected a more modest decline to 8.9.
The index had turned positive last month following six consecutive negative readings.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The new orders index fell to zero from March’s 15.7 while the employment index decreased 17 points and registered its fourth consecutive negative reading.
The index for future general activity increased from a reading of 28.8 in March to 42.2 this month.
This was the highest reading in 15 months, indicating that the recent decline in growth would be temporary.