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 May, albeit at a slower pace than in April.

According to the survey, the diffusion index for current general activity fell from a near 50-year high of 50.2 in April to 31.5 this month.

Economists had forecast the index to decrease to 43.0.

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

According to the report, the new orders index dropped 3.5 points to 32.5 this month, while the current shipments index decreased 4.3 points to 21.0 and the current employment index plunged 11.5 points to 19.3. Elsewhere, the survey’s price indicators suggest that price increases were more widespread this month: the prices paid index went up 8 points to 76.8, its highest reading since March 1980, and the prices received index increased 7 points to 41.0, its highest reading since May 1981.