The Manufacturing Business Outlook Survey, released by the Federal Reserve Bank of Philadelphia on Thursday, revealed the region's manufacturing activity continued to grow in August, albeit at a slower pace than in the previous month.

According to the survey, the diffusion index for current general activity fell from 24.1 in July to 17.2 this month, its third positive reading after reaching long-term lows in the spring.

Economists had forecast the index to decrease to 21.0.

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

According to the report, the new orders index decreased 4 points to 19.0, while the shipments index fell 5.9 points to 9.4 and the employment index tumbled 11.1 points to 9.0 but stayed in positive territory for the second consecutive month. Meanwhile, most of the future indicators of the survey remained elevated, suggesting that the firms expect growth over the next six months.