Philly Fed index falls well below forecast in July

Business in the Philadelphia region grew in July at a much slower pace than analysts had anticipated, as companies continue to come to terms with the effects of a strong dollar that has weighed on exports.

The Philadelphia Federal Reserve's business-conditions index fell to 5.7 in July from 15.2 in June, well short of the expected drop to 12.5.

However, the reading remained comfortably above zero, which means more companies are expanding instead of contracting.

The Philadelphia Fed added its index for new orders fell to 7.1 from 15.2 in June, while the index for employment slid to -0.4 from 3.8.