The Manufacturing Business Outlook Survey, released by the Federal Reserve Bank of Philadelphia on Thursday, revealed the expansion in the region's manufacturing activity decelerated in June.

According to the survey, the diffusion index for current general activity decreased from 16.6 in May to 0.3 this month. That was the lowest reading since February.

Economists had forecast the index to drop to 11.0 last month.

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

The June decrease in the headline index was due to declines in the indexes for new orders (to 8.3 from 11 in May), shipments (to 16.6 from 27.6), and employment (to 15.4 from 18.2). On the price front, both prices paid and prices received declined to their lowest levels since October 2016.