Philly Fed index remains in contraction

Manufacturing conditions in the Philadelphia region remained weak in February, albeit not as bad as expected, according to the latest report from the Federal Reserve Bank of Philadelphia.

The diffusion index for current activity rose to -2.8 from -3.5 in January, slightly ahead of consensus estimates for a reading of -3 but marking the sixth consecutive month in negative territory.

A reading below zero signals a contraction.

Meanwhile, the index for current new orders edged down 4 points to -5.3, while the gauge of current shipments remained positive for the second consecutive month but fell seven points from January.

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