Philly manufacturing contracts again in November

Manufacturing activity in the Philadelphia region contracted again in November but by less than expected, according to the Philly Federal Reserve.

The current general activity index, which surveys around 250 manufacturers in the district each month, increased by 3.1 points but stayed in negative territory at -5.9.

Analysts were expecting an unchanged reading from October's -9, which was up from -13.5 in September. This was the index's 16th negative reading in the past 18 months.

The Philly Fed said that while only 18% of manufacturers surveyed reported a contraction in activity, down from 35% last month, the proportion reporting an increase also fell to 12% from 26%; 70% reported no change, up from 38%.

Breaking down the sub-indices, the survey said: "The indicator for shipments turned negative, while the indicator for new orders was positive but low. The employment index suggests steady employment overall, and both price indexes indicate overall increases in prices. The future indicators suggest that firms’ expectations for growth over the next six months remain subdued."

Thursday's release contradicts with the New York Fed's Empire State manufacturing index released on Wednesday, which rose to a seven-month high of 9.1 this month.