A report released by the Federal Reserve Bank of Philadelphia on Thursday showed regional manufacturing activity unexpectedly contracted at a faster rate in the month of July.
The Philly Fed said its current general activity index slumped to a negative 12.3 in July from a negative 3.3 in June, with a negative reading indicating a contraction in regional manufacturing activity.
The continued decrease by the Philly Fed index came as a surprise to economists, who had expected the index to rebound to a positive 0.4.
Looking ahead, the Philly Fed said the future indicators suggest firms expect overall declines in activity and new orders but increases in shipments and employment over the next six months.
