The Philadelphia Federal Reserve Bank released its manufacturing index on Thursday. The index dropped to -1.6 in April from 12.4 in March, missing expectations for a decrease to 8.9.

A reading above zero indicates expansion, while a reading below zero indicates contraction.

"This month's Manufacturing Business Outlook Survey suggests a relapse in growth of the region's manufacturing sector. The survey's indicators for general activity, new orders, shipments, and employment all fell notably from their readings in March," the Philadelphia Federal Reserve Bank said in its survey.

The shipments index slid to -10.8 in April from 22.1 in March.

The new orders index decreased to 0.0 in April from 15.7 in March.

The prices paid index rose to 13.2 in April from -0.9% in March, while the prices received index increased to 7.4 from 3.5.

The number of employees index was down to -18.5 in April from -1.1 in March.

According to the report, the future general activity index jumped to 42.2 in April from 28.8 in March.