Growth in Philadelphia-area manufacturing activity slowed by 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 manufacturing activity in the region dropped to 22.7 in November from 27.9 in October.
While a positive reading still indicates growth in regional manufacturing activity, economists had expected the index to show a more modest decrease to 25.0.
The bigger than expected decrease by the Philly Fed Index was partly due to a slowdown in the pace of shipments growth, as the shipments index fell to 21.7 in November from 24.4 in October.
The number of employees index also slumped to 22.6 in November from 30.6 in October, indicating a slowdown in the pace of job growth.
On the other hand, the Philly Fed said the new orders index edged up to 21.4 in November from 19.6 in the previous month.
The report also said the prices paid index inched up to 39.0 in November from 38.1 in October, while the prices received index tumbled to 8.6 from 14.2.
Looking ahead, the Philly Fed said the diffusion index for future general activity rose 50.1 in November from 46.4 in October.
The New York Fed released a separate report on Wednesday showing growth in New York manufacturing activity slowed by more than anticipated in the month of November.
The New York Fed said its general business conditions index dropped to 19.4 in November from 30.2 in October. Economists had expected the index to fall to 26.0.
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