US regional manufacturing growth less widespread in December: survey

HOUSTON - US Federal Reserve Bank of Philadelphia on Thursday reported that regional manufacturing activity continued to grow in December, but growth was less widespread.

According to the December Manufacturing Business Outlook Survey, the current indicators for general activity, new orders, and shipments remained positive for the seventh consecutive month but fell notably from their readings in November. Some future indexes also moderated this month but continue to indicate that firms expect growth over the next six months.

The diffusion index for current activity fell 15 points to 11.1 in December, its lowest positive reading following its fall to long-term lows in April and May.

The percentage of firms reporting increases this month exceeded the percentage reporting decreases. The index for new orders decreased nearly 36 points to a reading of 2.3. The current shipments index fell 11 points to 14.4 in December.

The survey showed that the current employment index has remained positive for six consecutive months but decreased 19 points to 8.5 in December. Employment increases were reported by 18 percent of the firms, down from 34 percent in November.

This month's survey suggested a slower expansion for the region's manufacturing sector in December. Indicators for general activity, new orders, shipments, and employment remained positive but were weaker in December. Future indexes suggested overall growth is expected to continue over the next six months.

The Manufacturing Business Outlook Survey is a monthly survey of manufacturers in the Third Federal Reserve District covering eastern Pennsylvania, southern New Jersey and Delaware.

The Federal Reserve Bank of Philadelphia is one of the 12 regional Federal Reserve Banks that, together with the Board of Governors based in Washington, D.C., make up the Federal Reserve System.