Philly Fed Index Indicates Slower Contraction In January

The Federal Reserve Bank of Philadelphia released a report on Thursday showing regional manufacturing activity has contracted at a slower rate in the month of January.

The Philly Fed said its diffusion index for current activity climbed to a negative 8.9 in January from a negative 13.7 in December, although a negative reading still indicates a contraction. Economists had expected the index to inch up to a negative 11.0.

Looking ahead, the Philly Fed said most future indicators were positive, but expectations for growth over the next six months were not widespread.