Philly Fed factory index drops unexpectedly in August

Factory activity in the US mid-Atlantic region shrank unexpectedly in August, the results of a closely followed survey showed.

The Federal Reserve Bank of Philadelphia's manufacturing sector index fell from a level of 13.9 in July to -7.0.

Economists had pencilled in a reading of 7.0.

A key subindex linked to new orders softened from 20.7 to 14.6.

The subindex for staffing levels meanwhile fell from 15.2 to -5.7.

Yet that tracking the prices paid by companies rose from 19.8 to 24.0.

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