Investing.com - Manufacturing activity in the Philadelphia-region expanded at a faster pace than expected in August, boosting optimism over the U.S. economic outlook, official data showed on Thursday.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to a reading of 8.3 this month from July's reading of 5.7. Analysts had expected the index to rise to 7.0 in August.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The indicators for general activity are holding fairly steady and suggest modest growth.
While firms reported increased shipments compared with the prior month, the current indicators for new orders and employment suggest steady conditions.
The survey’s indicators of future activity predict a continuation of growth in the region’s manufacturing sector over the next six months.
EUR/USD was trading at 1.1168 from around 1.1173 ahead of the release of the data, GBP/USD was at 1.5658 from 1.5659 earlier, while USD/JPY was at 123.87 from 123.81 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.23, compared to 96.20 ahead of the report.
Meanwhile, U.S. stock markets were lower after the open. The Dow 30 dropped 1.2%, the S&P 500 shed 0.95%, while the Nasdaq Composite declined 0.95%.
Elsewhere, in the commodities market, gold futures traded at $1,147.30 a troy ounce, compared to $1,146.80 ahead of the data, while crude oil traded at $41.27 a barrel from $41.28 earlier.