Manufacturing activity in the Philadelphia region continued to grow but remained subdued in the month of December, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.
The report said the diffusion index for current general activity dropped to 9.4 in December after tumbling to 12.9 in November.
While a positive reading still indicates growth in regional manufacturing activity, economists had expected the index to rise to 15.0.
With the unexpected monthly decrease, the index for current general activity tumbled to its lowest level since August of 2016.
The Philly Fed said the survey's broad indicators were positive, although their movements were mixed during the month.
The report said the shipments index plunged to 10.0 in December from 21.6 in November, indicating a notable slowdown in the pace of growth.
On the other hand, the new orders index jumped to 14.5 in December from 9.1 in November and the number of employees index edged up to 18.3 from 16.3.
The report also said the prices paid index dipped to 38.0 in December from 39.3 in November, while the prices received index rose to 26.2 from 21.9.
Looking ahead, the Philly Fed said firms remained generally optimistic about future growth, with the diffusion index for future general activity climbing to 31.7 in December from 27.2 in November.
The New York Fed released a separate report on Monday showing regional manufacturing activity saw substantially slower growth in December.
The New York Fed said its general business conditions index plunged to 10.9 in December after rising to 23.3 in November. Economists had expected the index to dip to 20.0.
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