Philadelphia Fed's June report reveals slower regional manufacturing growth, with the diffusion index dropping from 4.5 to 1.3.

The Federal Reserve Bank of Philadelphia's June report shows a slower growth rate for regional manufacturing activity, with the Philly Fed's diffusion index for current general activity dropping to 1.3 from 4.5 in May. The unexpected decline is attributed to a quickened contraction in shipments and a continued decline in employment. Despite the negative indices, a positive reading still indicates growth.