(RTTNews) - Philadelphia-area manufacturing activity declined overall in the month of December, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.
The Philly Fed said its diffusion index for current general activity slumped to a negative 16.4 in December from a negative 5.5 in November, with a negative reading indicating contraction. Economists had expected the index to climb to a positive 3.0.
With the unexpected decrease, the diffusion index for current general activity fell to its lowest level since hitting a negative 26.3 in April of 2023.
The slump by the headline index reflected downturns by new orders and shipments, with the new orders index sliding to a negative 4.3 in December from a positive 8.9 in November and the shipments index falling to a negative 1.9 in December from a positive 4.5 in November.
The number of employees index edged down to 6.6 in December from 8.6 in November but continued to suggest increases in employment overall.
The report also said the prices paid index jumped to 31.2 in December from 26.6 in November, while the prices received index decreased to 7.3 in December from 14.3 in November.
Looking ahead, the Philly Fed said the survey's broad indicators for future activity continue to suggest widespread expectations for growth over the next six months, although the diffusion index for future general activity plunged to 30.7 in December from 56.6 in November.
The Federal Reserve Bank of New York released a separate report on Monday showing a sharp pullback by its reading on regional manufacturing activity in the month of December.
The New York Fed said its general business conditions index plummeted to 0.2 in December after spiking to 31.2 in November, although a positive reading still indicates growth. Economists had expected the index to tumble to 12.0.