Philadelphia Fed Business Index Slows

After reporting November business conditions were the best in more than two decades, Mid-Atlantic manufacturers curbed their enthusiasm about the economic environment this month.

The Federal Reserve Bank of Philadelphia said Thursday that its index of general business activity covering the regional factory sector fell to 24.5 in December after it had surged to 40.8 in November, the highest reading since December 1993.
The December reading is close to the 25.0 expected by economists surveyed by the Wall Street Journal. Readings under zero denote contraction, and above-zero readings denote expansion.

"The December Manufacturing Business Outlook Survey suggests a slower pace of expansion of the region's manufacturing sector but general optimism about the future," the report said.
The Philadelphia Fed's other indexes covering business activity also gave up ground this month after hitting multiyear high readings in November.
The new orders index dropped to 15.7 in December from 35.7 last month. The shipments index fell to 16.1 from 31.9.
The employees index plunged to 7.2 in December from 22.4 in November. The workweek index index slowed only slightly to 6.2 from 7.8.
More Philadelphia area manufacturers are raising their own selling prices. The prices-received index increased to 12.5 from 11.5 in November. The prices-paid index fell to 14.0 from 17.3.
Philadelphia-area manufacturers remain optimistic about the next six months although the confidence slipped from November's lofty level.
The general business expectations index slowed to 51.9 from 57.7. The expected employment index fell to 21.7 from 31.5.
-Write to Kathleen Madigan at kathleen.madigan@wsj.com
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