Credit: Forexpros - Manufacturing activity in the Philadelphia-region unexpectedly plunged into negative territory in August, falling to the lowest level since March 2009, official data showed on Thursday.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index tumbled by 33.9 points to minus 30.7 in August from July's reading of 3.2.
Analysts had expected the index to increase to 3.9 in August.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The survey's broad indicators for activity, shipments, and new orders all declined sharply from last month.
Firms indicated that employment and average work hours are lower this month, while Price indexes continued to show a trend of moderating price pressures.
The broadest indicator of future activity also weakened markedly
Following the release of the data, the U.S. dollar was up against the euro, with EUR/USD dropping 0.81% to trade at 1.4309.
Meanwhile, U.S. equity markets were down sharply after the open. The Dow Jones Industrial Average plunged 4.2%, the S&P 500 index tumbled 4.6%, while the Nasdaq Composite index plummeted 4.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
