Philadelphia Manufacturing Index Contracts

Manufacturing levels in the Philadelphia region showed contraction for the first time in a year, the Federal Reserve Bank of Philadelphia said Thursday.

The area’s factory index for August fell to a reading of minus 7.7, from a 5.1 reading in July, the regional Fed said.

Readings greater than zero indicate expansion; below that shows contraction.

The level was well below economists’ forecasts of a positive 7 reading, Bloomberg reported.

The Philadelphia Fed surveys about 100 manufacturers for the index in eastern Pennsylvania, Delaware, and southern New Jersey.