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Growth In Philadelphia Manufacturing Re-Accelerates More Than Expected

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After reporting a continued slowdown in the pace of growth in regional manufacturing activity in the previous month, the Federal Reserve Bank of Philadelphia released a report on Thursday showing growth accelerated by more than anticipated in the month of November.

The Philly Fed said its diffusion index for current general activity climbed to 10.4 in November after falling to 5.6 in October, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to rise to 7.0.

The bigger than expected rebound by the indicator for general activity came despite decreases by the new orders, shipments, and employment indicators.

The report said the new orders index plunged to 8.4 in November from 26.2 in October, while the shipments index tumbled to 9.8 from 18.9.

The number of employees index also slumped to 21.5 in November from 32.9 in October, although a positive reading still indicates job growth.

The report also showed a slowdown in the pace of price growth, as the prices paid index slid to 7.8 in November from 16.8 in October and the prices received index fell to 12.2 from 16.4.

Looking ahead, the survey's future activity indexes remained positive, suggesting continued optimism about growth for the next six months.

The Philly Fed said the diffusion index for future general activity rose to 35.8 in November after surging up to 33.8 in October.

Last Friday, a separate report released by the Federal Reserve Bank of New York unexpectedly showed a modest slowdown in the pace of growth in regional manufacturing activity in the month of November.

The New York Fed said its headline general business conditions index edged down to 2.9 in November from 4.0 in October, while economists had expected the index to inch up to 5.0.

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