Investing.com - Manufacturing activity in the Philadelphia-region expanded at the slowest pace in 13 months in March, 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 5.0 this month from February’s reading of 5.2. Analysts had expected the index to rise to 7.1 in March.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The survey’s current indicators for general activity and new orders were positive and remained near their low readings in February.
Firms reported overall declines in shipments and in work hours, while overall employment increased only slightly.
Firms reported more widespread price reductions in March, although most firms continued to report steady prices.
The survey's indicators of future activity showed mixed results but continued to suggest that the manufacturing sector is expected to continue growing over the next six months.
EUR/USD was trading at 1.0652 from around 1.0657 ahead of the release of the data, GBP/USD was at 1.4766 from 1.4783 earlier, while USD/JPY was at 120.86 from 120.80 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 99.42, compared to 99.40 ahead of the report.
Meanwhile, U.S. stock markets were mixed after the open. The Dow 30 fell 0.4%, the S&P 500 dipped 0.25%, while the Nasdaq Composite inched up 0.15%.
Elsewhere, in the commodities market, gold futures traded at $1,162.80 a troy ounce, compared to $1,163.30 ahead of the data, while crude oil traded at $45.27 a barrel from $45.20 earlier.