Philly Fed Index Unexpectedly Indicates Faster Contraction In December

(RTTNews) - Philadelphia-area manufacturing activity unexpectedly contracted at an accelerated rate in the month of December, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.

The Philly Fed said its diffusion index for current general activity slid to a negative 10.5 in December from a negative 5.9 in November, with a negative reading indicating a contraction. Economists had expected the index to inch up to a negative 3.0.

Meanwhile, the report said most future activity indicators rose during the month, suggesting more widespread expectations for overall growth over the next six months.