Investing.com - Manufacturing activity in the Philadelphia-region expanded at the slowest pace in 11 months in January, fuelling concerns over the U.S. economic outlook, official data showed on Thursday.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index deteriorated to a reading of 6.3 this month from December’s reading of 24.5. Analysts had expected the index to decline to 19.9 in January.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
Firms reported continued moderation in price pressures, attributable to lower energy costs.
Overall, firms reported that lower energy prices were having overall net positive effects on manufacturing business. The survey’s indicators of future activity show continued optimism about continued growth over the next six months.
EUR/USD was trading at 1.1642 from around 1.1632 ahead of the release of the data, while GBP/USD was at 1.5208 from 1.5200 earlier, while USD/JPY was at 116.73 from 116.80 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 92.48, compared to 92.55 ahead of the report.
Meanwhile, U.S. stock markets were lower after the open. The Dow 30 fell 0.35%, the S&P 500 dipped 0.4%, while the Nasdaq 100 shed 0.7%.
Elsewhere, in the commodities market, gold futures traded at $1,258.30 a troy ounce, compared to $1,257.30 ahead of the data, while crude oil traded at $48.12 a barrel from $48.03 earlier.