Philly Fed Index Plummets Much More Than Expected In April

(RTTNews) - The Federal Reserve Bank of Philadelphia released a report on Thursday showing a steep drop by its reading on regional manufacturing activity in the month of April.

The Philly Fed said its diffusion index for current general activity plummeted to a negative 26.4 in April from a positive 12.5 in March, with a negative reading indicating contraction. Economists had expected the index to slump to a positive 2.0.

Looking ahead, the Philly Fed said future activity indicators continue to suggest subdued expectations for growth over the next six months, although the diffusion index for future general activity inched up to 6.9 in April from 5.6 in March.