FX.co ★ Philly Fed Index Drops More Than Expected In April

Growth in Philadelphia-area manufacturing activity slowed more than expected in the month of April, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.

The Philly Fed said its diffusion index for current activity slumped to 17.6 in April from 27.4 in March. While a positive reading still indicates growth, economists had expected the index to show a more modest drop to 21.0.

Looking ahead, the future indicators for general activity and new orders fell sharply, but firms generally continue to expect growth over the next six months.