(Reuters) - Manufacturing activity in the U.S. mid-Atlantic region contracted for a fourth straight month in December, but factory operators reported a brighter outlook and said inflation pressures were easing notably, a survey released Thursday showed.
The Philadelphia Federal Reserve's monthly manufacturing activity index climbed to negative 13.8 from negative 19.4 in November. Economists polled by Reuters had estimated a reading of negative 10.
New orders tumbled to the lowest since the early days of the coronavirus pandemic in April 2020 and firms said employment shrank.
But the survey's measure of prices paid by goods producers tumbled to a 27-month low and came in below the series historical average for the first time since September 2020, the latest signal that inflation has begun to recede from the 40-year highs marked earlier this year.
Moreover, manufacturers reported a positive outlook for the first time since May. The outlook for new orders, shipments and factory employment all improved.