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A report released by the Federal Reserve Bank of Philadelphia on Thursday showed regional manufacturing activity contracted at a slightly slower rate in the month of January.
The Philly Fed said its diffusion index for current general activity rose to a negative 10.6 in January from a revised reading of negative 12.8 in December. A negative reading still indicates a contraction in regional manufacturing activity.
Economists had expected the index to rise to a negative 7.0 from the negative 10.5 originally reported for the previous month.
The uptick by the headline index came as the new orders and shipments indexes increased, although they remained negative.
The new orders index rose to a negative 17.9 in January from a negative 22.1 in December, while the shipments index climbed to a negative 6.2 in January from a negative 11.2 in December.
The number of employees index also crept up to a negative 1.8 in January from a negative 2.5 in December, continuing to suggest mostly steady levels of employment overall.
Meanwhile, the report showed the prices paid index tumbled to 11.3 in January from 24.3 in December, while the prices received index fell to 6.3 in January from 12.2 in December.
The Philly Fed said the survey's broad indicators for future activity also declined, suggesting less widespread expectations for overall growth over the next six months.
The diffusion index for future general activity slumped to a negative 4.0 in January from a positive 12.6 in December, hitting its lowest reading since May.
