Philly Fed Index Slumps Much More Than Expected In August

(RTTNews) - Manufacturing activity in the Philadelphia area has weakened in the month of August, the Federal Reserve Bank of Philadelphia revealed in a report released on Thursday.

The Philly Fed said its diffusion index for current general activity tumbled to a negative 0.3 in August from a positive 15.9 in July, with a negative reading indicating contraction. Economists had expected the index to decrease to a positive 7.0.

Meanwhile, the report said firms continue to expect growth over the next six months, as the diffusion index for future general activity climbed to 25.0 in August from 21.5 in July.