Philadelphia Fed index contracts again in October

According to the Federal Reserve Bank of Philadelphia, manufacturing activity in the region contracted for the second month in a row in October.

The Philly Fed manufacturing index improved to -4.5 from -6 in September but this still fell short of analysts’ expectations for the index to rise to -1.

A reading below zero indicates deteriorating conditions.

The new orders index fell to -10.6 in October from +9.4 in September, turning negative for the first time since May 2013.

The shipments index also fell into negative territory, dropping to -6.1 in October from +14.8 in September.

The Philly Fed said that although the survey’s future indicators decreased this month, a minority of firms expect a continued downturn in business activity over the next six months.