The Philadelphia Federal Reserve Bank released its manufacturing index on Thursday. The index dropped to -5.9 in December from 1.9 in November, missing expectations for a decline to 1.5.

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

"Manufacturing conditions in the region weakened this month, according to firms responding to the December Manufacturing Business Outlook Survey. The indicator for general activity, which was slightly positive last month, fell into negative territory," the Philadelphia Federal Reserve Bank said in its survey.

The shipments index was up to 3.7 in December from -2.5 in November.

The new orders index decreased to -9.5 in December from -3.7 in November.

The prices paid index slid to -9.8 in December from -4.9 in November, while the prices received index declined to -8.7 from -0.4.

The number of employees index climbed to 4.1 in December from 2.6 in November.

According to the report, the future general activity index slid to 23.0 in December from 43.4 in November.