Philadelphia-area manufacturing activity unexpectedly contracted at an accelerated rate in the month of February, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.<\/p>\n
The Philly Fed said its diffusion index for current activity plunged to a negative 24.3 in February from a negative 8.9 in January, with a negative reading indicating a contraction. Economists had expected the index to inch up to a negative 7.4.<\/p>\n
With the unexpected nosedive, the Philly Fed Index dropped to its lowest level since hitting a negative 43.2 in May 2020.<\/p>\n
The unexpected slump by the headline index partly reflected an accelerated contraction in new orders, with the new orders index falling to a negative 13.6 in February from a negative 10.9 in January.<\/p>\n
The shipments index also declined to 8.7 in February from 11.1 in January, while the number of employees index slid to 5.1 from 10.9.<\/p>\n
While the report also showed the prices received index tumbled to 14.9 in February 29.9 in January, the prices paid index inched up to 26.5 from 24.5.<\/p>\n
Looking ahead, the Philly Fed said most of the survey’s future indicators were positive but low, suggesting tempered expectations for growth over the next six months.<\/p>\n
The diffusion index for future general activity fell to 1.7 in February from 4.9 in the previous month.<\/p>\n