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 August, albeit at a slower pace than in July.

According to the survey, the diffusion index for current general activity fell from 21.9 in July to 19.4 this month. This was the lowest reading since December 2020.

Economists had forecast the index to increase to 23.0.

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

According to the report, the new orders index rose 5.8 points to 22.8 this month, while the current shipments index fell 5.7 points to 18.9. Elsewhere, the current employment index increased 3.4 points to 32.6. On the price front, the prices paid diffusion index went up 1.5 points to 71.2, while the current prices received index jumped 7.1 points to 53.9, its highest reading since May 1974.