Philly Fed index drops to more than two-year low in December

Manufacturing conditions in the Philadelphia region unexpectedly deteriorated in December, to a more than two-year low, according to a survey released on Thursday.

The Philadelphia Fed current manufacturing activity index fell to 9.4 from 12.9 in November, hitting its lowest level since August 2016, with more than 26% of manufacturers reporting increases in overall activity this month, while 17% reported declines.

The new orders index increased five points to 14.5 but remains notably lower than its average reading for the year. Meanwhile, the current shipments index was down 12 points to 10.0 - its lowest reading in 27 months.

Both the unfilled orders and delivery times indices were positive this month, suggesting higher unfilled orders and slower delivery times.