Philadelphia-area manufacturing activity unexpectedly contracted at an accelerated rate in the month of April, 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 slumped to a negative 31.3 in April from a negative 23.2 in March, with a negative reading indicating a contraction. Economists had expected the index rise to a negative 19.2.<\/p>\n
With the unexpected decrease, the Philly Fed Index dropped to its lowest level since hitting a negative 43.2 in May 2020.<\/p>\n
While 59 percent of firms reported no change in activity, 35 percent of firms reported decreases in activity compared to 3 percent that reported increases.<\/p>\n
The new orders index climbed to a negative 22.7 in April from a negative 28.2 in March, although the negative reading still indicates a contraction.<\/p>\n
Meanwhile, the report showed a notable slowdown in the pace of contraction in shipments, as the shipments index jumped to a negative 7.3 in April from a negative 25.4 in March.<\/p>\n
The number of employees index also improved to a negative 0.2 in April from a negative 10.3 in March, suggesting steady employment overall.<\/p>\n
The report also said the prices paid index tumbled to 8.2 in April from 23.5 in March, while the prices received index slid to a negative 3.3 in April from a positive 7.9 in March.<\/p>\n
Looking ahead, the Philly Fed said future indicators suggest firms’ expectations for growth over the next six months remain subdued.<\/p>\n
The diffusion index for future general activity climbed to a negative 1.5 in April from a negative 8.0 in March.<\/p>\n
On Monday, the New York Fed released a separate report showing New York manufacturing activity increased for the first time in five months in April.<\/p>\n