According to a report by the Federal reserve Bank of Philadelphia’s index of business activity in the manufacturing sector in the region in January fell to 22.2 vs 26.2 a month earlier.
Analysts had expected the index to fall to 24.9.
The index is a monthly survey of about a hundred of the leading manufacturing companies of Philadelphia (Eastern Pennsylvania, Delaware and South new Jersey) about their attitude to the current economic situation and expectations for the next six months. An index value below zero indicates the slowdown of the economy.
The Philadelphia Fed Manufacturing index along with the Empire State Manufacturing index is a leading indicator of the national ISM Manufacturing index, which is published two weeks later.