The Philadelphia Federal Reserve Bank released its manufacturing index on Thursday. The index dropped to 5.7 in July from 15.2 in June, missing expectations for a decline to 12.0.

A reading above zero indicates expansion.

The decline was driven by lower demand for manufactured goods. The new orders index slid to 7.1 in July from 15.2 in June.

The shipments index plunged to 4.4 in July from 14.3 in June.

The prices paid index climbed to 20.2 in July from 17.2 in June, while the prices received index were down to 1.7 from 4.8.

The number of employees index declined to -0.4 in July from 4.8 last month.

According to the report, the future general activity index rose to 41.5 in July from 39.7 in June. It was the highest level since January.