Philly Fed manufacturing index in December weakens to more than two-year low
Fixes story to reflect the indexes for new orders and employment increased.
Getty Images A view of U.S. Steel Edgar Thomson Steel Works along the Monongahela River, March 10, 2018 in Braddock, Pennsylvania.
The numbers: The Philadelphia Fed manufacturing index in December fell to a seasonally adjusted reading of 9.4, from 12.9 in November to reach the lowest level since August 2016.
Any reading above zero indicates improving conditions. Economists polled by MarketWatch expected a 14 reading.
What happened: Below the headline, the indexes for new orders and employments rose, while the shipments index fell to the worst reading in 27 months. The prices paid index fell slightly to a still-high 38 reading, while prices received rose to 26.2 from 21.9.
The big picture: The Philly Fed index peaked in May with a 34.4 reading, one of several business-sentiment indicators that have receded from lofty levels. Worries about global growth, rising interest rates, the strong U.S. dollar and trade tensions all have taken a toll.
The good news is that actual industrial output is still climbing, rising 3.9% in the 12 months to November.
Market reaction: The Dow Jones Industrial Average DJIA, -1.99% has dropped 13% from its October peak, though futures on Thursday suggested a slight advance.