Manufacturing conditions in the mid-Atlantic region were mixed in September, according to the Federal Reserve Bank of Philadelphia, although the headline index of regional manufacturing activity unexpectedly indicated a contraction.
A report released by the Philly Fed on Thursday showed that the diffusion index of current activity tumbled to a negative 6.0 in September from a positive 8.3 in August. The negative reading indicates a contraction in manufacturing activity.
The headline index fell by much more than expected, as economists had expected the index to dip to a positive 6.3.
However, the Philly Fed index noted that the indicators for new orders, shipments, and employment remained positive.
The new orders index climbed to 9.4 in September from 5.8 in August, while the number of employees index jumped to 10.2 from 5.3.
The shipments index dipped to 14.8 in September from 16.7 in the previous month, but the positive reading indicates continued growth.
The Philly Fed said the responses regarding general activity that were received earlier in the month may have been negatively affected by recent stock market volatility and international news reports.
The report also said the prices paid index dropped to 0.5 in September from 6.2 in August, while the prices received index edged down to a negative 5.0 from a negative 4.9.
Looking ahead, the Philly Fed said the survey's broadest indicator of future growth edged slightly higher during the month.
The future general activity index inched up to 44.0 in September from 43.1 in August, reaching its highest reading since January.
On Tuesday, a separate report from the New York Fed showed that business activity for New York manufacturers has continued to contract in the month of September.
The New York Fed said its general business conditions index inched up to a negative 14.7 in September from a negative 14.9 in August, with a negative reading indicating a contraction in manufacturing activity.
Economists had expected the general business conditions index to show a more substantial improvement to a reading of negative 0.5.
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