A report released by the Federal Reserve Bank of Philadelphia on Thursday showed a significant downturn in regional manufacturing activity in the month of September.
The Philly Fed said its diffusion index for current activity tumbled to a negative 13.5 in September from a positive 12.0 in August, with a negative reading indicating contraction. Economists had expected the index to slump to a negative 0.7.
Looking ahead, the diffusion index for future general activity jumped to 11.1 in September from 3.9 percent in August, suggesting more widespread expectations for overall growth over the next six months.
