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

According to the survey, the diffusion index for current general activity fell from26.3 in November to 11.1 this month. This was the lowest positive reading following the index decline into negative territory in spring months.

Economists had forecast the index to decrease to 20.0.

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

According to the report, the new orders index plunged 35.6 points to 2.3 this month, while the current shipments index declined 10.5 points to 14.4. and the current employment index tumbled 18.7 points to 8.5. Elsewhere, the survey’s price indicators suggest that price increases were less widespread this month: the prices paid index dropped 11.8 points to 27.1 and the prices received index decreased 7.7 points to 18.0.