Growth in Philadelphia-area manufacturing activity slowed by much more than expected in the month of November, 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 tumbled to 12.9 in November from 22.2 in September, although a positive reading still indicates growth in regional manufacturing activity. The index had been expected to dip to 20.0.
The steep drop by the headline index was partly due to a notable slowdown in the pace of growth in new orders, as the new orders index plunged to 9.1 in November from 19.3 in October
The shipments index also dropped to 21.6 in November from 24.5 in October, while the number of employees index fell to 16.3 from 19.5.
On the inflation front, the prices received index dipped to 21.9 in November from 24.1 in October, but the prices paid index inched up to 39.3 from 38.2.
The Philly Fed said firms remained generally optimistic about future growth, although the diffusion index for future general activity slid to 27.2 in November from 33.8 in October.
Meanwhile, a separate report released by the New York Fed showed the pace of growth in New York manufacturing activity unexpectedly accelerated in November.
The New York Fed said its general business conditions index rose to 23.3 in November from 21.1 in October. Economists had expected the index to dip to 20.0.
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