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

According to the survey, the diffusion index for current general activity fell from 16.8 in August to 12.0 this month.

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

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

According to the report, the new orders index (-1.0 point to 24.8) fell, while the indexes for shipments (+7.4 points to 26.4) and employment (+12.2 points to 15.8) increased. Both the unfilled orders and delivery times indexes also remained positive this month, suggesting higher unfilled orders and slower delivery times. On the price front, the prices paid index surged 20 points to 33.0, its highest reading since December 2018, while the index for prices received rose 8 points to 20.8, its highest reading since March.