US Philly Fed index slumps in August

Manufacturing activity in the US mid-Atlantic region slowed sharply in August, according to the results of one of the most widely-followed surveys for the sector.

The Federal Reserve bank of Philadelphia's Manufacturing Business Outlook index slumped from a reading of 25.7 in July to 11.9 for August.

Economists had forecast a reading of 22.0.

All of the surveys subindices were declined from one month to the next, save for that linked to firms' inventory levels, which edged higher from 14.4 to 15.4.

Significantly, a gauge linked to companies' new orders fell from 31.4 to 9.9, with another tracking prices paid by firms declining from 62.9 to 55.0.

Company staffing levels also fell back, with the corresponding subindex down from 16.8 for July to 14.3 in August.

In an initial reaction, as of 1344 BST the yield on the benchmark 10-year US Treasury note was flat at 2.86%.