The Manufacturing Business Outlook Survey, released by the Federal Reserve Bank of Philadelphia on Thursday, revealed the region's manufacturing activity continued to expand in early June, albeit at a slower pace than in May.

According to the survey, the diffusion index for current general activity fell from 31.5 in May to 30.7 this month. This was the lowest reading since February.

Economists had forecast the index to slip to 31.0.

A reading above 0 signals expansion, while a reading below 0 indicates contraction.

According to the report, the new orders index dropped 10.3 points to 22.2 this month, while the current shipments index rose 6.2 points to 27.2 and the current employment index surged 11.4 points to 30.7. On the price front, the prices paid diffusion index went up 3.9 points to 80.7, reaching its highest level since June 1979, while the current prices received index moved up 8.7 points to 49.7, its highest since October 1980.